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of <h1>Tribunal overturns duty demand on Chloroquin Phosphate Tablets due to lack of evidence</h1> <h3>CCE- Chandigarh Versus M/s Ind Swift Limited (Vice-Versa)</h3> CCE- Chandigarh Versus M/s Ind Swift Limited (Vice-Versa) - 2019 (369) E.L.T. 770 (Tri. - Chan.) Issues:Appeal against demand of duty and penalty imposition due to alleged non-declaration of Chloroquin Phosphate Tablets by appellant in the classification list and failure to maintain separate records of inputs used in manufacturing.Analysis:1. Demand of Duty:The appellant, engaged in manufacturing generic medicaments exempt from duty, faced a demand for 8% of the value of Chloroquin Phosphate Tablets cleared without duty payment. The appellant contended not availing Cenvat credit on specific inputs used, thus challenging the demand. The appellate tribunal noted the absence of evidence supporting the allegation of availing credit, leading to setting aside the demand.2. Penalty Imposition:The Revenue alleged the appellant availed Cenvat credit on certain inputs without evidence to the contrary, justifying the demand and penalty imposition. However, the appellant's submission of maintaining separate records under Rule 57CC(1) raised doubt due to missing records held by the department. Given the department's failure to produce the records and the minimal credit amount involved, the tribunal favored the appellant, dismissing the penalty imposition.3. Maintaining Separate Records:The appellant's claim of maintaining separate records of inputs used in manufacturing Chloroquin Phosphate Tablets was initially doubted due to missing records. Despite the department's loss of records, the tribunal granted the benefit of doubt to the appellant, concluding that separate records were indeed maintained. This crucial finding influenced the decision to set aside the demand and dismiss the penalty.4. Judgment Outcome:The tribunal set aside the impugned order confirming the demand, thereby allowing the appellant's appeal. Consequently, as the impugned order was overturned, the Revenue's appeal was deemed not maintainable and was dismissed. The judgment highlighted the importance of maintaining accurate records and the burden of proof in tax disputes, ultimately ruling in favor of the appellant based on the lack of concrete evidence against them.
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