S.S. Kang, Member (J)
1. Applicants filed this application for waiver of duty of Rs. 54,17,020 and penalty of equal amount.
2. The duty was confirmed on the ground that there is shortage in the finished product as also there is difference in the quantity of final products as per the RG I record and the record prescribed by the BIS.
3. Applicants are engaged in the manufacture of wires and cables. They are also registered with Bureau of Indian Standard for manufacture of ISI marked wires and maintaining the statutory records prescribed by the BIS. In respect of shortage, there was no explanation of the Applicants at the time of visit by the Central Excise officer. On verification of the records, it was also found that the Applicants were reflected the total production of wires and cables in the RG I register and subsequently on the request of the Customers, they were also supplying ISI marked goods and entered the said ISI goods with BIS register prescribed by the Bureau of Indian Standard. BIS register clearly mention quantity etc. and mark ‘ISF on a particular date. When the entries of quantities of that particular date in BIS register were compared with the quantity of that particular type of wire and cable on that particular date in RG I register, it was found that the Applicants was not having sufficient balance of wires and cables in RG I register on certain occasions but had shown entries in BIS register. The duty was demanded in respect of duty of quantity in RG I compared to BIS register.
4. Contention of the applicant is that they were entering the wires and cables in the RGI register and after these were ISI marked. This practice was disclosed by Satish Chand Rohtagi, Works Manager in his statement. The Applicants also pleaded financial hardship on the ground that their factory was closed.
5. Contention of the Revenue is that as per the Central Excise Rules and Procedure, RGI stage for wires and cables is when they were reeled or rolled on drums and would be disconnected from the machine, production of wires and cables is to be accounted in RGI register at this stage and if they are not packed and transferred to store room, their stock should be reflected in column 15 of the RG I register. Whenever the goods were required for inspection, entries should be reflected in column 17 of RG I register. The entries of goods after testing, packing and labeling should be shown in column 16 of the RG I register. The contention of the applicant requires appreciation of evidence produced by the applicants in support of their claim which will be done at the time of regular hearing. Prima facie as there is difference in the quantity in RG I register and BIS register, we find it is not a fit case for total waiver of duty. After taking into consideration all the facts and circumstances of the case and financial position, we direct the Applicants to deposit Rs. five lakhs within a period of 8 weeks. On deposit of above-mentioned amount, remaining amount of duty and penalty will remained stayed during the pendency of the Appeal. Adjourned to 11.8.2004 for reporting compliance.