2019 (6) TMI 554

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....rency Notes amounting to Rs. 12,15,000/- were recovered from the residential premises of the Director, Shri Pawan Kumar Gutgutia. Statements of Accountant, Authorized Representative and the Director were recorded. The statement of the director was subsequently retracted before the Notary Public. This is the second round of Litigation before the Tribunal. 2. The Ld. Advocate appearing on behalf of the appellants submits that during the period of dispute, the appellant company being a small scale manufacturer of cement, availed the exemption as small scale manufacturer under Notification No. 8/2000-CE dated 01.03.2000, Notification No. 8/2001-CE dated 01.03.2001, Notification No. 8/2002- CE dated 01.03.2002 and Notification No. 8/2003-CE d....

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.... are alleged to relate to clandestine manufacture and removal of cement and nothing has been brought on record regarding the consumption of raw materials, the transportation of raw materials procurement, transport of finished goods or the details of the buyers. It is his submission that the Show Cause Notice is based on assumptions and presumptions. Further, the quantification of liability of the appellant also suffers from mistakes which are apparent. 6. It is also the case of the appellant that the alleged quantity of cement cannot be manufactured using the quantity of raw materials recorded in the statutory records. The appellant states that by accounting the some quantity twice, the department has enhanced the annual value of clea....

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....of Clinker, 0.59-0.40 M.T. (approx.) of Slag and 00.03-0.02 M.T. (approx.) of Gypsum are required. In other words, 1.02 M.T. of raw materials (approx.) produces 1 M.T. of Cement (Approx.). The quantity of raw materials, conditions of production and other similar factors. The appellant submitted in the grounds of appeal that during the period of dispute i.e. from November, 2000 to March 2004, they have consumed 19,237.457 M.T. of raw materials to manufacture 18,153.450 M.T. of cement which is in consonance with the raw materials consumed and output ratio mentioned. The detail has also been tabulated by the appellant as below:- Year Consumption (Raw Materials) Cement mfg. Qty. of Cement Nov.'00- -- -- March 2001 378....

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....d in Continental Cement Company Vs. Union of India as reported in 2014 (309) E.L.T. 411 (Allh.) has observed thus: "12. Further, unless there is clinching evidence of the nature of purchase of raw materials, use of electricity, sale of final products, clandestine removals, the mode and flow back of funds, demands cannot be confirmed solely on the basis of presumptions and assumptions. Clandestine removal is a serious charge against the manufacturer, which is required to be discharged by the Revenue by production of sufficient and tangible evidence. On careful examination, it is found that with regard to alleged removals, the department has not investigated the following aspects : (i) To find out the excess production detai....