TaxTMI 
TaxTMI 
2018 (11) TMI 1017
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....Appellants, SGS and TGIPL, the residential premises of Shri Bharat Vyas, Partner of the appellants and the office premises of M/s. S.G. Transport, transporter for the appellants, on 22.05.2007. Various documents were seized and statements recorded during the course of the search. Pursuant to the above search, the present show cause notice dated 17.05.2010 was issued to the appellants. The demand under the show cause notice dated 17.05.2010 was classified based on the following annexures to the show cause notice: Sr. No. Annexure No. Particulars Duty Demand (In Rs.) 1 I-A Demand on clearance of raw materials to SGS without reversal of Cenvat credit based on entries in Note Book No. 119recovered from premises of the Appellants Rs.39,74,922/- 2 I-B Demand on alleged clearance of finished goods to SGS without payment of excise duty based on entries in Note Book No. 119 recovered from premises of the Appellants 4,60,366/- 3 II-A Demand on clearance of raw materials to TGIPL without reversal of Cenvat credit based on entries in Tanker Register (TLR) obtained from premises of transporter 36,28,545/- 4 II-B Part I Demand on alleged clearance of finished goods to TGI....
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.... of a total of 31 clearances where the duty demand of Rs. 36,18,970/- has been raised on the ground of clearances of finished goods without payment of excise duty. The Appellants have produced invoices in relation to 10 clearances indicating payment of excise duty on the goods and the same have been found to be genuine by the Range Superintendent. The Ld. Principal Commissioner has observed that in respect of the remaining 21 clearances, the demand of duty of Rs. 20,49,510/- is sustainable as the Appellants have failed to supply any evidence to support their contention that the said clearances are of raw materials and not of finished goods. Aggrieved by this impugned order, the Appellants are before me with the present appeal. 3. Shri Ishant Bhatt, ld. Counsel appearing on behalf of the appellant submits that the demand confirmed and dropped by the impugned order in the remanded proceedings can be summarized as follows:- Sr. No Annexure No. Grounds of demand No. of Clearances Duty demand on clearances Impugned order 1 I-B Demand on alleged clearance of finished goods to SGS without payment of excise duty based on entries in Note Book No. 119 recovered from premises of the....
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....ted the contention of the appellants that the goods were not raw materials by stating that the appellants have not submitted proper evidence. He submits this Tribunal in the appellant's own case reported at 2014 (303) ELT 434 and affirmed by the Hon'ble High Court of Bombay reported at 2016 (334) ELT 416 (Bom.) held that the demand on clearance of raw materials to the sister units of the appellants, without payment of duty/reversal of Cenvat credit, is not sustainable as the entire situation is revenue neutral in nature. The entire demand in the present case is liable to be set aside on this ground alone. He submits that the department has failed to furnish any corroborative evidence that the clearances in question are clearances of finished goods. The onus is on the Revenue to establish any clandestine clearance of finished goods with corroborative evidence. In support of this, he placed reliance on the judgment in the case of Saakeen Alloys Pvt. Limited vs. CCE, Ahmedabad - 2013 (296) ELT 392 (Tri. Ahmd.). The said judgment was affirmed by the Hon'ble Gujarat High Court reported at 2014 (308) ELT 655 (Guj.) wherein the department's appeal against the aforesaid order of the Tr....
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.... advocate of the appellant that as per Paras 1.1 to 1.10 and pages J. 1 to J.4 of their reply to the show cause notices, SOG has given full justification to the effect that no goods were cleared without payment of duty. It is observed from pages 425 to 431 of the paper book filed by the appellant SOG that appellant in their reply to the show cause notice F. No. DGCEI/MZU/l&lS'B'/12(4)99/2007/Pt/2785 dated 17.05.2010 did file detailed submissions (on pages 29 to 35 of the reply) on proposed demand of Rs. 30,62,500/-. It is, therefore, not correct on the part of the adjudicating authority to say that no defence has been filed by the appellant on this proposed recovery. This part of the demand is required to be remanded back to the adjudicating authority to give reasoned order on the stand taken by the appellant after affording them a personal hearing." From the above order of this Tribunal, it is clear that the demand cannot be raised if the clearances are of raw material. In the present case, the dispute between the department and the appellant is that whether the 21 clearances are of raw material or finished goods. 6. As regards the demand on 4 clearances mentioned at Serial No. ....