TaxTMI 
TaxTMI 
2016 (1) TMI 12
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....f various articles of copper and copper alloys such as copper tubes, copper rods, copper strips, copper flats, brass tubes, cupro nickel pipes etc. falling under Chapter 74 of the Central Excise Tariff Act 1985. Their factory was visited by the officers of the Directorate of Central Excise Intelligence on 25.03.2008 at 8.00AM in the morning. Various verifications were conducted and records were seized. Further, the officers found copper winding wire scrap lying in gunny bags as also in loose and lump condition in the factory. As the appellant could not explain the source of procurement of the said scrap, which is raw material for the appellant, the same was seized under panchnama. Verification of the finished goods stock revealed that Ad br....
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....tted that cupro nickel and brass tubes were finally completed at the late hours on 24.03.2008 and therefore entries could not be made in RG-I records. They also submitted that cupro nickel tube is meant for export and as such there is no incentive for them for not entering the same in RG-I register. They made a request for provisional release of the goods. 5. Based upon the above, the appellant was served with a show-cause notice dated 17.09.2008, proposing confiscation of the raw materials as also the final product. The notice also proposed imposition of penalty on the assessee. 6. The assessee in their reply to the said show-cause notice submitted that though ad brass tubes and cupro nickel pipes were manufactured a week back, the s....
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....da Fabrics Pvt Ltd [2009 (233) ELT 397 (Tri-Ahmd)] laying down that non-cenvatable raw material cannot be confiscated under Rule 25 of Central Excise Rules inasmuch as the same refers to confiscation of the finally manufactured excisable items. 8. The said order of the Commissioner is impugned before the Tribunal. Revenue is in appeal against that part of the order vide which the adjudicating authority has dropped the proposal to confiscate the scrap. 9. I have heard Shri Y. Sreenivasa Reddy, learned advocate for the assessee and Shri S. Teli, learned A.R. for the Revenue. 10. After appreciating the submissions made by both sides, I find that the adjudicating authority has confiscated the finally manufactured products, which accord....
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....n the RG-I register. The entire case of the Revenue is based upon the initial statements recorded at the time of visit of the officers. It is well settled law that such statements, though, form part of the evidence, have to be taken with a pinch of salt and require further corroboration. The Revenue cannot rest its case on the sole basis of the statements without taking into account the surrounding circumstances. As such in the absence of any reference by the said deponents, to the fact of passing of quality control test about a week ago and in the absence of any admission that the same were not entered with any malafide intention to remove them clandestinely, I am of the opinion that confiscation of the final products and imposition of ....