TaxTMI 
TaxTMI 
2014 (12) TMI 114
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....ut payment of duty. Cold rolled/hot rolled sheets were captively consumed in manufacture of such circles. Appellant misconceived that it was eligible to the exemption and wrongly availed the benefit to the detriment of interest of Revenue. Further, allegation of the Revenue was that cold rolled SS sheets claimed by Appellant to have been manufactured on job work basis was in violation of Notification No. 214/86-CE, dated 25-3-1986 (as amended). 2.2 There was another allegation by Revenue against appellant stating that while it was engaged in manufacture and clearance of dutiable goods during the period May, 2006 onwards, it was neither registered with Central Excise department nor it filed central excise returns. It also failed to discharge duty liability on the goods manufactured and cleared during the period from 2006-07 to 2010-11 (upto December 2010). It was further alleged that appellant violated the provisions of Rules 4, 6, 8, 9, 10, 11 and 12 of Central Excise Rules, 2002. 3.1 Investigation brought out that the process carried out by the appellant resulted in manufacture of SS hot rolled sheets, SS cold rolled sheets and SS Circles. SS circles were final product....
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....ure the quantity of goods alleged to have been manufactured by the appellant did not find appreciation by the Authority below in absence of credible evidence by appellant. 4.2 Investigation examined the case of the appellant for the relevant period to determine the value of goods for the purpose of SSI exemption in terms of Notification No. 8/2003-C.E., dated 1-3-2003. Contention of the appellant that 110% of cost of production of SS circles was taken into consideration as transaction value, did not get appreciation of the Authority below for want of evidence. Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods), Rules, 2000 which is in consonance with CAS-4 guideline was applied by the authority for valuation of the goods. Transaction value of SS patta/patti captively consumed was determined applying such Valuation Rules and clearances for each financial year were determined to examine eligibility to the exemption granted to SSI. 4.3 Investigation came with the material on record to demonstrate that the appellant was the job worker against raw material supplied by certain suppliers, but it had not supplied raw materials to them (ref: para 2.21....
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....bsp; Adjudication was made objectively on the basis of relevant facts and evidence available on record. When the process carried out by the appellant demonstrated that it had manufactured SS circles and that was liable to duty, duty was levied thereon. Therefore adjudication is not faulty. (2) In pages 11 and 12 of show cause notice dated 2-6-2011, the process carried out by the appellant was brought to its notice. Allegation was made in clear terms stating that SS circles manufactured by the appellant made it liable to duty. (3) It was specifically alleged in para 221 of the notice as under ;- "During the period May, 2006 to December 2010 the noticee had manufactured and sold/cleared 2058229.53 kgs. of SS circles, SS cold rolled sheets captively consumed valued Rs. 13,36,66,345.48 and 121581.100 kgs. of SS scrap valued at Rs. 3,72,79,499/- as detained in annexure E to this notice. The Central Excise duty not paid by the noticee on these clearances of SS circle and SS scrap, has been worked out as per annexure I to this notice, by treating the value of SS circles and SS scrap, as value cum duty price, as provided under explanation ....
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....s since those were marketable goods and excisable. 7. Heard both sides and perused the records. 8. Prima facie it appears that process of manufacture of SS circles was brought to the notice of the appellant by the show cause notice as contended by Revenue. Learned adjudicating authority found no rebuttible evidence to the contrary. The value of clearance of SS circles determined by him does not appear to be improper nor appear to be suffering from any arithmetical error. 9. It appears to be proved fact on record that patta and patti were used to manufacture SS circles. SS circles were liable to duty being excisable goods. There is nothing on record to show that SS circles were not marketable goods. Fiction was only created by the appellant that SS circles were not marketable goods. Such plea was discarded by learned Adjudicating Authority when buyers thereof confirmed that they had purchased such goods from the appellant. 10. Appellant's plea that it was also trading on SS Circles was considered by learned adjudicating authority to exclude the traded turnover from the clearance of excisable goods. So far as the job work is concerned, it appears to be proved ....
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.... and findings at para 3.20 of the adjudication order. 19. Appellant baselessly pleaded that it was engaged in the job work. But it came to record that certain parties were sending hot rolled patti to the appellant for manufacture of cold rolled patties and send the same back to them. Job work charges were recovered by appellant for such work. Once the appellant became manufacturer for the job worked goods, duty liability thereon was bound to arise. Learned authority took note of the entire fact in paras 3.2 and 3.12 of his order. Case of the appellant warranted imposition of duty in the absence of benefit of Notification No. 8/2003-C.E., dated 1-3-2003 available to it. 20. Raw materials used in manufacture of SS circles were considered taking the purchase figures from invoices placed before it and duty liability was appropriately determined. There were no wrong calculation made at all. Learned authority addressed this issue in para 3.22, 3.23 and 3.24.1 of his order. 21. Enquiry made with certain persons listed in para 3.24.2 of the impugned order revealed that they were buyers of SS circles from the appellant without payment of duty. Apart from this, department a....