TaxTMI 
TaxTMI 
2023 (6) TMI 696
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.... are engaged in the manufacture of copper wire and super enamelled copper wire falling under Chapters 74 and 85 of the CETA, 1985. They avail CENVAT credit on the inputs, input services and capital goods under the relevant rules. During the course of audit of their records in 2014, it was noticed that they purchased goods and later sold the same without payment of duty. The appellant explained that the goods were purely traded without bringing into their factory for which permission has been sought from time to time to undertake trading activity from their factory, to which, no response was received from the Department. But the audit party was of the opinion the Copper wires were cleared from the factory in the guise of trading. The case wa....
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....copper wire from two suppliers and sold the same as it is without bringing the same to the factory and carrying out any manufacturing process on the same. From time to time, purchase of said goods with all details had been intimated to the Department and necessary application was also submitted to the Department seeking permission for trading. The application for Registration was neither rejected nor accepted by the Department. Thus, in the absence of any response to their application, it is deemed to have been accepted. 3.2. Further the learned advocate has submitted that there should be sufficient evidence to hold that there was clandestine manufacture and clearances of goods, viz. procurement of inputs, sufficient manpower, machinery ....
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.... said claim of the appellant. The vendors were not examined. He also submitted that the learned Commissioner (Appeals) has proceeded in upholding the confirmation of the duty solely on the ground that the invoices received from the suppliers did not provide any specification of the goods procured, whereas the sales invoice contain the thickness of the copper wire. 3.5. He has further submitted that it is a settled principle of law that in the matter of clandestine removal of goods, heavy burden is placed on the Department to prove the said allegation with clinching evidences and not by mere assumptions and presumption basis. It is his contention that neither the Director of the appellant nor the transporter admitted in their respective s....
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.... Tech Abrasives Ltd. Vs. CCE&C, Raipur [2018(362) ELT 961 (Chhattisgarh)] ii. CCE, Mangalore Vs. Pals Microsystems Ltd. [2011(270) ELT 305 (SC)] 4. Per contra, learned AR for the Revenue reiterated the findings of the learned Commissioner (Appeals). He has submitted that the appellant had purchased copper wire and copper conductor bits against invoices from two vendors where no duty particulars were mentioned nor description of the copper wire with thickness was reflected; therefore, their claim that the same goods were cleared as such without bringing into their factory is false and unacceptable. Further he has submitted that the transporter in his statement clearly informed that the goods are kept maximum for a period of one w....
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....om the factory of the appellant. On completion of investigation after two years since the audit objection, report dt.01/11/2016 of Superintendent, Preventive addressed to the Assistant Commissioner, Central excise, Hubli Division. The said report was at the centre of controversy since a copy of the same was not handed over to the appellant. On the direction of the Bench, a copy of the said report was handed over to the learned advocate for the appellant who accordingly addressed their response to the facts contained in the said letter. 8. The crux of the allegation of the Department is that the appellant though claimed to have purchased the copper wire from the aforesaid two vendors and without bringing the same into their factory, sold ....
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.... purchased from these vendors later found to be not of good quality accordingly sold in the market as such without bringing the same into their factory is alleged to be unacceptable and the conclusion arrived was that the goods were manufactured and cleared. 10. The appellants on the other hand argued that through their letter dt. 09/11/2011 they sought permission to undertake trading activity from their factory of the copper wire. Since the said letter was not responded, they did not bring the purchased goods to their factory, but traded/sold the same from the premises of the transporter itself. Further, he has referred to copies of intimation letters addressed to the Range Superintendent, enclosed with the Appeal paper book, indicating....