TaxTMI 
TaxTMI 
2006 (1) TMI 417
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....nce the same was re-imported vide Bill of Entry dated 10-8-01 which were cleared by the Customs authorities on 13-8-01 at 16.05 hours. The respondent's case is that after detailed reprocessing overnight in their factory, the goods were re-exported on 14-8-2001 i.e. on the very next day. 2. Investigation conducted by the Department however, led the Department to believe that the re-exported goods were not the same as the re-imported one. The presumption (called later by the adjudicating authority as "preponderance of probability") was due to the fact chat the inward register maintained by the respondents in their factory gate, which are not statutory in nature, showed two entries in respect of the same re-imported goods. There was an....
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....e midnight of 13-8-2001/14-8-2001 as indicated in the Blending and packing record of the assessees' factory and consequently, the Ranitidine base in question weighing 740 Kgs which was originally cleared from the Assesseees' factory under ARE -1 No. 78/2001, dated 28-07-2001 for export but re-imported under Bill of Entry No. 16152, dated 10-8-2001 was not re-exported under Shipping Bill No. 2367770, dated 14-8-2001 and accordingly, the assessees are liable to pay duty of Rs. 1,98,181/- on the 740 Kgs of Ranitidine base cleared from the assessees' factory under ARE - 1 No. 78/2001-2002, dated 28-7-2001 which was re-exported. 6.6 As regards the penalty it is stated by the assessees that mere indication of Section or the Rules contrave....
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....p; reprocessing; or (b) refining; or (c) re-making; or (d) subject to any process similar to the processes referred to in clauses (a) to (c) above. 1. Such re-importation takes place within one year from the date of exportation. 2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow; 3. The Assistant Commissioner of Customs is satisfied as regards identity of the goods. 4. The importer executes a bond to the effect (a) that such reprocessing, refinin....
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....customs (basic customs duty and additional customs duty etc.) subject to the satisfaction of the Assistant Commissioner of Customs that such loss has occurred during such operations." 5. The learned SDR contends that the respondents have failed to establish how the goods cleared by the Customs on 13-8-01 at 16.05 hours could have reached their premises on the same day after covering a distance of about 200 KMs. Another entry made by the respondents in their inward register on 14-8-01 in respect of the very same item at 9.30 hrs. is the cause for such conclusion. When the officers visited in the month of May, 2002 too, they also found seven numbers of labels on the drum which indicated the re-test date as "Oct., 2001" which adds supp....
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....robability". This statement on his part itself clearly proves that there is hardly any evidence available with the department to initiate such penal provisions against the respondents especially when there is no proof of clandestine removal. He draws support for this argument from the order of the Tribunal in the case of Tijiya Steel Pvt. Ltd. v. CCE, Halda reported in 2005 (185) E.L.T. 425 (Tri. - Kolkata) wherein it is held that the allegation of clandestine removal is required to be proved by production of sufficient and tangible evidence. 8. In counter, the learned SDR interprets that when the adjudicating authority refers to preponderance of probabilities, he means that there is enough circumstantial evidence against the respon....