2018 (1) TMI 634

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....ich is an input; b) demand of Rs. 2,96,041/- as demand of excise duty on the goods allegedly be clandestinely manufactured and cleared during the period August & September 2009 calculated on the basis of difference between daily production register (profit register) and daily stock register (RG-1 statutory register); c) Demand of Rs. 1,67,117/- of excise duty on the goods allegedly removed clandestinely on the basis of two consignment notice; d) Equivalent amount of penalty on the appellant company; e) Redemption fine on the excess finished goods found during the search and penalty on the individual Sh. K.D. Agarwal, Director. 4. On consideration of submissions made by both the sides, I find that during a search operation in the a....

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....on that the consignment notes were in respect of the goods cleared and received back and the second consignment note does not have any signature of the appellant or the responsible person. As regards, the confiscation of the finished goods found in excess, a mere non entry of the finished goods in statutory records do not render them liable for confiscation and the assessee is not liable to pay any redemption fine. He would rely upon the following decisions: * Shah Alloys Ltd. Vs CCE Ahmedabad III - 2015 (319)ELT 343 (Tri-Amd) * UOI Vs Jain Pack (P) Ltd. =- 2008 (221) ELT 180 (Raj.) * CCE Vs Saakeen Alloys Pvt. Ltd. - 2014 (308) ELT 655 (Guj.) * Davinder Sandhu Impex Ltd. Vs CCE Ludhiana - 2016 (337) ELT 99 (Tri.-Del.) 6. Ld. DR, o....

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....ns in Show Cause Notice does not indicate that the Revenue is seeking to reverse the cenvat credit availed by the appellants on the raw material which was found short. In the absence of any evidence to indicate that the Calcium Carbonate is an input was manufactured by the appellant, the demand of excise duty is not sustainable. b) As regards the demand of excise duty of the goods allegedly clandestinely manufactured cleared during the period August and September 2009 I find that this allegation is based only on the mismatch of the production figures indicated in the private register as against RG-1 register. It is noticed from the Show Cause Notice as well as Order In-Original, the lower authorities have wholly seen the part of the misma....

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.... that the Revenue has not been able to conclusively prove that there was clandestine manufacture and clearances of the goods from the factory of the appellants. c) As regards, the evidences relied upon by the Ld. DR more specifically the statements of the Directors which is reproduced in the Show Cause Notice, I find that except for the statement of the Director which indicated that the goods were cleared clandestinely and cash basis further investigation had not taken place and there is no evidence on records to show that the cash was received from whom and where it was utilized. The ratio of the judgment of the Hon'ble High Court of Allahabad in the case of Vikram ...... 2014 (303) ELT A88 is also on the directly on the point as also th....