2006 (8) TMI 339

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Appellant. Shri Pramod Kumar, JDR, for the Respondent. [Order]. -  The appellants are engaged in the manufacture of copper tubes and condenser evaporator coils falling under Headings 7411 and 8415. Their factory was visited by the Central Excise Officers on 17-6-95, who conducted various checks and verifications. As a result, 1602.280 Kgs of final product was found unaccounted for i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ure. The goods found in the factory cannot be confiscated unless there is strong evidence of intention on the part of the manufacturer to remove the same without payment of duty. Further, the shortages were attributed to loss of inputs during the manufacturing process. He further contended that the quantity of shortages was determined arbitrarily and had no factual support. There was no evidence o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....alued at Rs. 2,69,718.05. The appellants have rightly contended that the same would be attributable to the processing loss, the adjudicating authority has not given any benefit to the appellants on the said account on the ground that the loss should be marginal/negligible and the quantity short found is much on the higher side. Further, he has not tried to find out as to how much is the normal pro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....removal. As such, I set aside the confiscation of the same. As regards the duty in respect of the said goods, the same have to be cleared on payment of duty. If already cleared on payment of duty, no further demand on the said account can be sustained against them. 8. Similarly, shortages of scraps in the factory involving duty amount of Rs. 600/- by itself cannot be made a ground for hold....