2005 (7) TMI 510

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....ured tread rubber clandestinely without payment of duty of Rs. 5,58,700/-. There was also an allegation that 7794.15 Kgs of pre-cured tread rubber and repairable strips of pre-cured tread rubber was found at the premises of the appellant in excess of production accounted in RG I Register kept with an intention to remove it without payment of duty of Rs. 75,260/- which has been demanded. There is another allegation that the amount of Rs. 2,09,462/- should not be demanded being the duty on 21696 Kgs of tread rubber or pre-cured rubber that had been manufactured and cleared clandestinely without payment of duty as per the shortage in physical stock of raw materials with respect of Form IV register. The Commissioner after due examination droppe....

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....elf in para 7 that for the manufacture of tread rubber and pre-cured tread rubber involve combination of various other raw material in the correct proportion. The revenue has not taken into account these factors including the absence of excess electricity consumption factor and use of carbon black for production of goods. He has also noted that the sulphur is not the main ingredient, the main ingredient is the raw rubber and carbon black. Having held so, he should not have confirmed the duty demand of Rs. 1,50,548/- solely on the basis of the entries which have not been made in the statutory registers. With regard to the excess found, the explanation given was that the pre-cured tread rubber and repairable strips had been received as replac....