Duty demand on mixed clearances fails where manufactured and traded goods were not factually segregated.

A duty demand based on the assumption that all clearances at 2% CST were manufactured goods was held unsustainable where the invoices showed both traded and manufactured items. The Tribunal noted that some sales related to shuttering plates and others to channels, and the Revenue made no factual segregation of the quantities attributable to manufactured goods. In the absence of such segregation, the presumption underlying the demand could not be sustained, and the impugned order was set aside.

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Issues: Whether duty demand could be sustained on the assumption that the assessee's clearances at 2% CST were entirely of manufactured goods, despite invoices showing both traded goods and manufactured goods and no segregation of quantities by the Revenue.

Analysis: The invoices produced before the Tribunal showed that some sales related to shuttering plates, while others related to channels, which were raw material and traded items. The Revenue did not undertake any exercise to separate the quantities of manufactured goods from traded goods. A demand raised on such a presumption, without factual segregation of the clearances, was not sustainable.

Conclusion: The duty demand was not sustainable and the impugned order was set aside.

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