2014 (4) TMI 578

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....rse of preventive checks in the appellants unit it was observed that the appellants had received goods from their principal manufacturers for carrying out job work. The appellants, instead of clearing goods manufactured out of the said raw materials received from their principal manufacturers, cleared their own manufactured finished goods under the cover of job work challans to the principal manufacturers during period from 15.05.2007 to 01.11.2007. A SCN dated 21.07.2011 was issued to the appellants demanding duty of RS 12,66,230/- under Sec. 11A of Central Excise Act, 1044 (hereinafter referred to as 'CEA') on their own challan alongwith interest under Sec 11AB of CEA and imposition of Rules 2002 (hereinafter referred as 'CER') on the gr....

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....g, they had cleared their own finished goods which was incidentally the same i.e., copper rods. It is his submission that subsequently the appellant had discharged Central Excise duty on the copper rods which were cleared by them, which were manufactured out of job worked items. It is his submission that there was no evidence of corroborative nature to prove that there has clandestine removal of goods as the finished goods was sent back to main principal manufacturer under job work challan. It is also his submission that when the investigation took place in November 2007, panchnama, statements were recorded on the same date but Show Cause Notice was issued on 21.7.2011 hence demand cannot sustained for extended period. He would submit that ....

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....ioning under the job work is different and clearance of finished goods manufactured in the appellants factory from his own raw materials is different. It is statutory requirement that the appellant should record all the production that took place in his factory premises out of his own raw-materials in the statutory books of accounts which were not done so, as it is undisputed that the appellant had cleared the finished goods manufactured out of his own raw materials to their clients. In my considered view, record to be maintained by the appellant for the materials received for job working would show the balance of raw-materials while finished to be manufactured were already dispatched. The provisions of job work scheme is totally differen....