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2014 (4) TMI 718 - AT - Central ExciseDemand of duty - Clandestine removal of goods - Penalty u/s 11AC - Held that:- entire case of the Revenue is that during the period 2000-01 to 25.09.2003, the appellants have issued 1,94,376 Armature Assembly/shafts, but have shown the production of starter motors in their RG-I register only to the extent of 1,76,001. As such, it is their case that the balance quantity of Armature Assembly issued, stands used in the manufacture of starter motors, which were cleared without payment of duty - Apart from the said entry showing issuance of Armature Assembly in work-in-progress register, which is admittedly not a statutory register, the Revenue has neither alleged nor produced any other evidence in respect of other raw-materials which are also required for production of starter motors. It is not the Revenue s case that the appellants were buying unaccounted for cooper wire, yolk, bearings, brakes, slot insulators, laminations and commutators, which are also required for the manufacture of starter motors. In the absence of these raw-materials, it is not possible to manufacture their final product with just Armature Assemblies. Demand cannot be made on the basis of the entries made by the staff in the rough registers maintained by them without their being any corroborative evidences. Further, in the absence of any allegations as regards receipt of other raw-materials, demand cannot be confirmed on the basis of one of the inputs shown to have been received. Further, the quantum of final product calculated mathematically on the basis of receipt of one of the raw-materials and on input-output ratio cannot be held to be just and fair. By applying the above ratio of law declared by various courts in umpteen number of cases, it has to be held that the Department has not been able to establish its allegations and charges made against the appellants, especially, when the appellants have accounted for and have given explanation for each and every Armature Assembly/shaft - Decided in favour of assessee.
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