TaxTMI 
TaxTMI 
2016 (9) TMI 1016
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....whereunder a demand of Rs. 2,30,39,602/- along with interest has been confirmed and equivalent amount of penalty has also been imposed. The impugned order also confirms central excise duty of Rs. 1,31,898/- for short found inputs which had been deposited by the assessee-appellant and was appropriated to the Government account by the impugned order. A penalty of Rs. 40 lakhs has also been imposed on Shri Ramesh Kumar Agarwal, Director of the appellant company under Rule 26 of the Central Excise Rules, 2002. 3. The respondent is Commissioner, Central Excise, Jaipur-I. The case of the Revenue is that as the appellant No. 1 is a manufacturer of Zinc Oxide, who during different periods depending upon the form of raw mate....
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....65.41% achieved to 84% of the inputs basket in quintals. (ii) It is pertinent that no input output norms have ever been fixed by the Department for this type of manufacture of zinc oxide, and indeed they cannot be fixed considering that any number of impurities are present in the input also varying from batch to batch, and there is no standard input with standard predetermined quantity of zinc. In the statement itself which is relied upon, extracted at page 35 (of Paper Book) it has clearly come out that from zinc dross the output would be 70 to 80% and from scrap 50 to 70% for the recovery of zinc oxide. A perusal of pages 49/50 (of appeal) shows that the input basket will have materials like iron, aluminium, lead and s....
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....nd in the case of the Director the penalty may kindly be set aside. 5. We have carefully considered the facts on record and the submissions of both sides along with the case laws cited. 6. Revenue has made out its case of suppressed production of clandestine clearances of goods without payment of duty solely on the basis of approximation production considering average yield of the product viz. zinc oxide out of the raw material issued, which has been in the nature of different varieties like zinc dross, zinc ingots etc. and which are of different purities. During the hearing, ld. Advocate for the appellants further referred to literature - "Zinc - The Science and Technology of the Metal, Its Alloys and Compou....
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.... there are further corroborations in the form of documentary evidences, which could be like despatch details for the production, receipt details of the said material, transactions of the sale money, transportation details of such goods, details of additional consumption of electricity for such suppressed production a prudent individual would not agree with the present conclusions of the Revenue. There is nothing on record from the Revenue side to come to a reasonable conclusion to say that there has been preponderance of probability of such suppressed production on the part of the appellant. The evidences in the form of approximation and averaging production as 77.6% and one statement of Shri Agarwal, Director ....