TaxTMI 
TaxTMI 
2019 (2) TMI 932
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.... impugned order. 3. Briefly stated facts of the case are that the respondent M/s. Bhushan Steel and Strips Ltd. (hereinafter referred to as M/s. BSSL), Sahibabad holding Central Excise Registration have been engaged in the manufacture of Cold Rolled products in various forms like Coils/Shets/Strips and Plain/Corrugated Galvanized Sheets falling under Chapter Sub-Heading Nos. 7210.11/7210.19/7209.20/7209.30/7211.41 of the first schedule to the Central Excise Tariff Act, 1985. The main raw materials for the manufacture of their finished products were Hot Rolled Coils and Zinc purchased from various manufacturer. The party was selling their finished goods directly from the factory as well as through depots/branches situated at different pla....
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....ndent buyers directly or through group companies or were stock transferred to their depots for further sale. Thus, it was noticed that M/s.BSSL, Sahibabad had (i) indulged in evasion of Central Excise duty by procuring raw material from their group companies through its depot at Chandigarh, and (ii) by selling their finished excisable goods which were cleared clandestinely without payment of Central Excise duty through its Chandigarh depot. It was also alleged that the excisable goods removed without payment of duty from M/s.BSSL, Sahibabad and shown under the head "Trading" in the Tax Audit Report and as a trading activity between M/s.BSSL, Chandigarh and group companies and within the group companies also, was a false presentation of the ....
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....uty evasion made against them. 7. The adjudicating authority after carefully examining all the case records/evidences decided the above case and passed the Order-in-Original No.49/commr./GZB/09 dated 14.12.90 wehrein it had been, interalia, observed by him that: "................... the Department has not brought out any material evidence in the show cause notice, but doubted the correctness/genuineness of the contents of the invoices issued by the group companies in favourof M/s. BSSL's Chandigarh depot. I have carefully examined and considered the submissions made by the party on this vital issue and also perused the records. It is on record that as a part of 'trading' activity M/s. BSSL's Chandigarh depot during the disputed period....
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.... the argument of the defence that merely because they entered purchases of CR Coils/CR Sheets/GP Sheets etc., during respective periods in purchase account titled as 'raw material', it does not mean that they purchased raw material i.e. H R Coils from sellers. There is also no evidence with regard to alleged (i) transportation of said H R Coils from M/s. BSSL's Chandigarh depot to their factory at Sahibabad; (ii) manufacture of C R Coils/Sheets out of the said H R Coils, (iii) clandestine removal of such Cold rolled products from the factory to their Chandigarh depot. In absence of any supportive evidence whether oral or corroborative or otherwise, I do not find any case of clandestine removal of excisable goods by the party from their fact....
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....mittedly the raw material purchased at Chandigarh depot was reflected in their account book and as rightly held the same could not be sold in an unaccounted manner. Even though the Revenue has contested that the transactions at Chandigarh were with the related parties of assessee but none of those related parties have been made a party to the proceedings. Apart from the bare allegations, there is not even an iota of evidence to show as to how such huge quantity of raw material was transported from Chandigarh to Sahibabad and as to how the final product allegedly manufactured at Sahibabad were transported to Chandigarh in a clandestine manner. The value of the goods alleged to be clandestinely removed from Sahibabad factory is around Rs. 100....