AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 432
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.... benefit under Notification No. 56/2002-CE dated 14.11.2002. Further, M/s Siddhant Chemicals and M/s Neeru Enterprises are located in the state of U. P. And procuring Menthol products manufactured by M/s Abhay Chemicals on payment of duty and availing cenvat credit. 3. The facts of the case are that an investigation was started at the end of the office of Commissioner of Central Excise, Merrut-II against various units located in their jurisdiction who were purchasing Menthol Solution and De-mentholised Oil from Jammu & Kashmir based units. The Meerut Commissionerate searched the premises of various commission agents and buyers as well as sellers of Menthol Solution & DMO. The officers found that commission agents are neither maintaining proper record of sale of raw material nor purchased the raw material. The commission agents had issued Kissan Kharid Patra to various farmers whereas the investigation conducted at the end of farmers indicates that the farmers are non existence. On the basis of investigation at the end of commission agents and farmers, the Merrut Commissionerate concluded that J&K based units are not purchasing raw material, so there is no question of manufacture o....
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....hows that the appellant was manufacturer during the impugned period. Otherwise, Revenue could not have allowed to continue the movements of trucks carrying raw material as well finished goods during the impugned period. He further submits that the appellant submitted the copy of GRs, Form 21, Form VAT-58, Toll receipts issued at Lakhanpur, copy of agreement between appellant and its supplier issued by the office of Deputy Commissioner Excise, Toll Post, Lakhanpur alongwith computerized list of consignments having (Truck No., quantity, date) imported by the appellant during the period which itself shows that the appellant had manufactured the goods during the impugned period. Moreover, the Central Excise Hq. Preventive Staff, Jammu visited their factory premises of appellant and found that the appellant was manufacturer during the impugned period. He also submits that the insurance surveyor also physically verified the goods cleared by the appellants with regard to loss of material which substantiate clearance of the goods by the appellant. He further submits that the officers of the Department visited the factory premises of the appellant periodically and physically verified the st....
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....Section 9-D of Central Excise Act, has not been followed by the Ld. adjudicating authority wherein as in the case of CCE, Delhi-I vs. Kuber Tobacco Industries. reported in 2016 (338) ELT 113 (Tri. Del.) this Tribunal held that if the adjudicating authority is relying on certain statement then the witnesses is required to be called for examination in chief and thereafter, the adjudicating authority has to form the opinion that the statements given by the witnesses are correct and offer for cross examination to the assessee. The same procedure has not been followed, therefore, the demand of duty cannot be confirmed against the appellants. Moreover, it is his submission that refund claim sanctioned under Notification No. 56/2002-CE dated 14.11.2002, have not been challenged by the Revenue, therefore, in the light of the decision of Flock India Pvt. Ltd. Reported in 2000 (120) ELT 285 (SC) and C.EX., Shillong Vs. Jellalpore Tea Estate - 2011 (268) ELT 14 (Gau.), the duty cannot be demanded from the appellants. 5. He also submitted that the Jurisdictional Commissioner has sent report to the Chief Commissioner dated 21.05.2010 and the same has not been considered by the adjudicating aut....
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....at all the purchases of crude Mentha oil by these Mentha units located at Jammu were bogus units, these units did not have any infrastructure to manufacture the said products, were non-functional and Transporters who did not tum up for tendering statements were declared non-existent etc. however, on close scrutiny of the records, the following facts emerges: (i) Most of the consignments of raw material were found entered at the Toll barrier. (ii) The Officers of District Industry Centre, who have assessed and fixed the capacity of manufacturing units, have been regularly verifying their purchase consignments. (iii) The Range staff had also been visiting these units for PBC Checks/verification of plant/machineries and reported nothing adverse against these units. 6. Therefore, it may not be strongly alleged with certainty that during the period 2005-2006 to 2008-2009, these 27 units have not purchased crude Mentha oil and therefore have not manufactured any Menthol products in their units at all. There is hardly any time left for further investigation to strengthen the case as process is very time consuming and most of these of units have closed their factories due to withdr....
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....no excisable goods were manufactured/supplied, have generalized that all the purchases of crude Mentha oil by these Mentha units located at Jammu were bogus units, these units did not have any infrastructure to manufacture the said products, were non-functional and Transporters who did not tum up for tendering statements were declared non-existent etc. however, on close scrutiny of the records, the following facts emerges: (i) Most of the consignments of raw material were found entered at the Toll barrier. (ii) The Officers of District Industry Centre, who have assessed and fixed the capacity of manufacturing units, have been regularly verifying their purchase consignments. (iii) The Range staff had also been visiting these units for PBC Checks/verification of plant/machineries and reported nothing adverse against these units. 6. Therefore, it may not be strongly alleged with certainty that during the period 2005-2006 to 2008-2009, these 27 units have not purchased crude Mentha oil and therefore have not manufactured any Menthol products in their units at all. There is hardly any time left for further investigation to strengthen the case as process is very time consuming and ....
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.... needs to be concluded to have been not properly understood by the Adjudicating Authority. The present system of assessment in Central Excise is record based. The Officer assessing the duty is not required to be present when the goods are being manufactured to witness the process of manufacture. The adjudication is to be done on the basis of evidence produced before the Adjudicating Authority. As per Evidence Act evidence in totality is to be taken into consideration and therefore, finding recorded in the impugned Order by the Original Authority who passed the said Order dated 29/01/2010 is bad in law. The Original Authority did not understand the process either of assessments or of adjudication. Further the investigations were not undertaken to find out wherefrom the inputs were received by the appellant for the goods they manufactured and on which they paid duty and which were exported, if they had been received the inputs from M/s Ruchi Infotech System, Jammu or the other suppliers of inputs. Further, the additional evidence submitted by the appellant indicated that in respect of units in Jammu, Central Excise Officers visited the factory premises and seen that the manufacturing....