2017 (1) TMI 145

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....or Respondent Per: Ramesh Nair: The fact of the case is that appellant used to send raw material i.e. valve steel & steel round bars to M/s Advance Mechanical Works, Rajkot for job work. It was noticed that after processing, appellant received material short to the tune of 16% stating that there is processing loss. A show-cause notice was issued contending that the 16% loss is abnormal, accordin....

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....ding of demand is that process loss is not 16%, however the department did not adduce any evidence that there is a physical waste in scrap arising in the process. It is not the case of Revenue that 16% physical wastes and scrap was cleared clandestinely either by the appellant or by the job worker. Therefore duty demand confirmed is on assumption and presumption basis. He placed reliance on the fo....

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....16% loss which is abnormal therefore the demand was rightly confirmed by the lower authorities. 4. We have carefully considered the submissions made by both the sides and perused the records. We find that the demand was confirmed on the 16% process loss on the ground that this quantum is abnormal, however the Revenue could not produce any evidence to show that there is a diversion of input or gen....