TaxTMI 
TaxTMI 
2017 (11) TMI 138
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....Shri P.K. Choudhary 1. Briefly stated the facts of the case are that the respondents are engaged in the manufacturing of Un-machined Castings of Iron falling under Chapter 73 of the First Schedule to the Central Excise Tariff Act, 1985. A Show Cause Notice dated 05.05.2006 was issued proposing demand of duty of Rs. 37,90,688/- alongwith interest and to impose penalty on the ground that during the....
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.... Bench to the grounds of appeal. It is contended had not submitted any documentary evidence in support of the huge loss spread over nearly four years. The revenue also contended that the respondent had not given expert's opinion or technical reasons of the abnormal yield of the finished goods. 3. The Id. Consultant appearing on behalf of the respondent company drew the attention of the Bench to t....
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....s, not for general market and backed by purchase order. If that be so, department could have examined the purchase orders to see what specifications the customers wanted and how could that be related to such a low yield in respect of the kind of raw materials they used. The department did nothing of that sort. If the goods are precision castings, as claimed, those should fetch higher v....
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....erial period. These two factors are sufficient to demolish the basis of the demand on clandestine removal but the department ignored these figures available in the monthly returns as well as the basic information which could be gathered through market verification. If the raw material is virgin, burning loss will be low, if the raw material is market scrap and end product is high quality precisio....