TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 1339
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....Aeromatics is located in the state of U. P. and procuring Menthol products manufactured by Jammu Based Manufacturer 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 of finished goods by J&K based units, the goods manufactured were sold to UP based manufacturers who in t....
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.... not have allowed to continue the movements of trucks carrying raw material as well finished goods during the impugned period. He submitted that the Central Excise Hq. Preventive Staff, Jammu visited their factory premises of the Jammu based manufacturer and found that the Jammu based manufacturer were manufacturer during the impugned period. He also submits that the insurance surveyor also physically verified the goods cleared by the Jammu based manufacturer with regard to loss of material which substantiate clearance of the goods by the Jammu based manufacturer. He further submits that the officers of the Department visited the factory premises of the Jammu based manufacturer periodically and physically verified the stock and manufacturing activity and no adverse was reported. It is impossible to manufacture and export of the goods without purchase of raw material. He further submits that the Jammu based manufacturer had installed DG sets and got the approval for installation of those DG sets from General Manager, DIC, Jammu and also got the consent of Pollution Control Board and its installation, Chief Engineer, Elect. Maintt. & R.E. have also granted permission to install the t....
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.... 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 Jammu based manufacturer. Consequently, the cenvat credit cannot be denied to the buyer/appellant. 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 authority. Moreover, the show cause notice has been issued by invoking extended period of limitation, therefore, the same is not sustainable. 6. He also submitted that the department drew samples for final product on various occasions. Moreover, PBC checks were undertaken, he also submits that in case of Nanda Mint and Pine Chemical Ltd. , a similar show ....
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....ndering 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 withdrawal of Central Excise Duty on all Mentha products w.e.f 27.02.2010. Thus, the investigation may not be in tune with the investigations conducted by the Central Excise Commissionerate Merrut-II." 11. We further take of the fact that t....
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....roducts, 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 withdrawal of Central Excise Duty on all Mentha products w.e.f 27.02.2010. Thus, the investigation may not be in tune with the investigations conducted by the Central Excise C....
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....s 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 process going on was evidence by them and such evidences being on record and submitted by the appellant it was the duty of the Original Authority to accept them and not to discard by saying that the Officers have not seen the goods ....