TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 518
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....ct, 1985. On 15.09.2008, the officers of Central Excise (Preventive) Department) Ahmedabad-I visited the Appellants factory. The said officers recovered the statutory records mainly RG1 and RG 23A Part I. They have also recorded the statement of Shri Mahendra G. Duggad, Authorised Signatory (Appellant No. 2) of the said firm. A Show Cause Notice dt.18.12.2009 was issued, proposing demand of duty of Rs. 10,58,795.00 alongwith interest and penalty alleging that they have clandestinely manufactured the goods and cleared without payment of duty. It has also proposed imposition of penalty on Shri Mahendra G. Duggad, Authorised Signatory of M/s Manav Metal Industries. The Adjudicating authority confirmed the demand of duty of Rs. 10,58,795.00 al....
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....on'ble Allahabad High Court in the case of Commissioner Vs Vikram Cement (P) Ltd V - 2014 (303) ELT A 82 (All.) and Commissioner Vs Sunil Kumar Gupta - 2015 (315) ELT A89 (All.). He further submits that the Tribunal consistently held that mere shortage of the raw materials without verifying the other aspects of manufacture and clearance of the goods, it cannot be treated as clandestine removal of the goods. He relied upon the decision of the Tribunal in the case of Mahavir Metals Industries Vs CCE Daman - 2014 (313) ELT 581 (Tri-Ahmd). 3. On the other hand, the learned Authorised Representative on behalf of the Revenue reiterates the findings of the Commissioner (Appeals). He submits that the Appellant could not explain the difference betw....
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....inished goods. It is further stated that in the entire process of production, the waste generated at all stages were being utilized within the factory for further process. He further stated that they were utilizing gas supplied by M/s. Adani Energy Limited, Ahmedabad for the production and had been no fixeratio between gas consumption vis-`-vis quantity of final product. The demand of duty of Rs. 10,58,795.00 was determined on the basis of theoretical input-output calculation and presumptive clearance of finished goods. Admittedly, the Central Excise Officers took a round of the factory with panchas, but, no stock verification conducted by the Central excise officers. It is seen that the Department had not verified the consumption of the ga....
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....not be made the sole basis for holding against them. I agree that the veracity of the statements has to be gauged from the accompanying circumstances and has to be corroborated by way of same independent evidences, which is fully absent in the present case. As such, I am of the view that in the light of various decisions relied upon by the appellant in their memo appeal, such statements which are inconsistent with the documentary evidences, only raises a doubt, but cannot take the place of an evidence. As such, I am of the view that the impugned order is required to be set aside in totality and the appeal is required to be allowed." 6. In the case of Commissioner of Central Excise, Lucknow vs. Sigma Castings Limited 2012 (282) E.L.T. 414 (....
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....e of it cannot be related to the appellants business accounts and the sole statement of director, there is no other evidence to reflect upon the clandestine activities of the appellants. The appellants have also taken a stand that it is beyond their capacity to manufacture more than 1000 MT per month and as such the Revenue's allegation that they cleared more quantity in the month of February, 2004 have to be taken with the pinch of salt." 8. In the case of Saru Concast Alloys P. Limited vs. Commissioner of Central Excise, Meerut-I 2013 (289) E.L.T. 310 (Tri.-Del.), the Tribunal allowed the appeal and held as under:- "4. I find that as regards the excesses, there is no evidence showing that the appellant was in the process of removing th....