2017 (5) TMI 612

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....i was observed wherein M/s.J.R. Duralumin Alloys (JRD in short), Bangalore were purchasing imported aluminium scrap from the High Seas Sellers, viz., M/s.Ambika Overseas and M/s.Aman Impex on high sea sales basis. The said aluminium scrap on importation were allegedly diverted by the original importers to the actual manufacturers, viz., M/s.Rajmoti Exrusions Pvt. Ltd. (REPL in short) and Superfine Extrusions Pvt. Ltd., (SEPL in short). Show-cause notices were issued to both the manufacturing units making various other co-noticees, whereby it was contended that REPL and SEPL received the aluminum scrap and the same was converted into manufactured goods, viz., aluminium profiles and cleared them clandestinely. The adjudicating authority confi....

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....10-JC dated 17/08/11, which was amended by the Circular dated 17/12/2015. 4. I have carefully considered the submissions made by both the sides. I find that the demand against REPL and SEPL were confirmed only on the assumption and presumption that they might have manufactured and cleared the goods clandestinely. The such contention is on the belief of supply of aluminium scrap by JRD Bangalore. Even though it is accepted the JRD Bangalore has removed the aluminium scrap but no investigation has been carried out, as regards the receipt of such aluminium scrap by the aforesaid manufacturers and manufacture of goods out of said scrap. Therefore, in the absence of any investigation and evidence regarding receipt, manufacture and clearance o....

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....based on assumptions and presumptions so far as the same is concerned with goods manufactured. I therefore, find that the authorities who have issued the said show cause notice dated 15/07/2010 have failed to frame charges. Therefore, I have no option but to set aside impugned order in original in respect of confirmation of demand, demand of interest on confirmed demand and penalty imposed on appellant No.1 under Section 11AC of the Central Excise Act, 1944, confiscation of aluminum extruded profiles and sections and imposition of fine in lieu of confiscation. Once the show cause notice does not sustain, the penalty imposed on appellant No.2 also needs to be set aside. The impugned order in original is modified to the above extent. ....