SAYAJI IRON AND ENGG CO PVT LTD Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the Order- in-Original bearing No. 9/MP/84 [File No. V(68)15-3-OA/82], dated 24-11-1984 directing the appellants to pay appropriate duty on 4 machines totally valued at Rs. 1,75,380/- alleged to have been illegally removed and imposition of personal penalty of Rs. 1500/-. The duty amount has since been quantified at Rs. 14,030.40.

(2.) On 16-4-1982, the officers of the Central Excise Preventive Wing paid a surprise visit at the factory premises of the appellants and on verification of the actual stock as well as the registers maintained by the appellants, found that there was a shortage of one machine each in the category of Sayaji concrete mixture machine size 10 x 7, Sayaji concrete mixture machine size 14 x 10, Jaw crusher machine and Rotary Screen machine. The officers recorded the statement of the factory manager Mr. JR Dave on the same day who agreed to the discrepancy and shortage of each of those machines and submitted that there was a possibility of mistake in accounting and making entry in RG1 register and submitted that they would verify the registers and submit their explanation. The appellants vide their letter dated 11-5-1982 submitted their explanation as under :

(3.) SO far as the concrete mixture 14 x 10 is concerned, they submitted the explanation that one machine bearing serial No. 107 was through error, twice accounted for as receipt in RG1 register once on 5-12-1981 vide Production Report No. 271, dated 5-12-1981 and again on 23-12-1981 vide P.R. No. 365, dated 23-12-1981. Thus there was an excess accounting in the RG1 register whereas actually no such machine was ever produced.