2007 (2) TMI 17

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....assed by the Commissioner (Appeals), Central Excise & Customs, Vadodara. 2. The appellants herein were served with a show cause notice dated 31-10-2002 alleging illicit removal of Alpha Blue and Beta Blue falling under Chapter 32 valued at Rs.23,53,235/- involving duty of Rs.3,79,583/-. The charge was based on examination of purchase and consumption of raw material. It is alleged that as per le....

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....ri K.K. Sundaram, under some compulsion, had no alternative but to surrender before the Investigating Officers and commit that he would be ready to pay the duty on the differential production figure. (a) Thus, show cause notice demanded duty of Rs.3,79,583/- on 7074.20 kgs + 3402.40 kgs of Alpha Blue and Beta Blue (Rs.2,27,291/- already paid and Rs.1,52,291/- remaining unpaid). (b) Confirm c....

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...., the attempt to manufacture has failed. It is well settled that once inputs are issued for manufacturing of final products and if there is a loss of such inputs during the manufacture, credit cannot be denied. Therefore, the denial of credit of Rs.61,281/- cannot be up held. 5. Show cause notice admittedly based on the declaration of adoption of a new technology which was destined to improve t....

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....ns and theoretical calculations can be arrived at. Therefore, the inference of excess unaccounted production cannot be upheld. 6. It is well settled law that in order to prove clandestine removal the onus is on the Department. In the present case there is no material to show the movement of such large quantities of unaccounted production and reliance by the appellants on the decisions in the ca....