TMI Blog2011 (8) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... ide the demand of duty on the finished goods - Decided in favour of assessee - E/1027, 1166, 882/2010; - - - Dated:- 26-8-2011 - Mr. B.S.V. Murthy, J. Shri S.J. Vyas, Adv. for Assessee. Shri R.Srova, JDR for the Revenue. Per: Mr.B.S.V. Murthy: The facts of the case, in brief, are that during the search conducted at the appellant s premises on 14.12.02, shortage of 7,277 kgs of one of the raw materials viz. Di Methyle Terephthalate was found. Shri T.T. Thomas, Authorised Signatory (2nd appellant) admitted shortage and also admitted that the raw material was used in the manufacture of Wire Enamel. He also admitted that the total quantity of Wire Enamel manufactured by using raw material would be 27,288.75 kgs and it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Nissan Thermoware Pvt.Ltd. Vs. CCE Daman 2009 (246) 191 (Tri-Ahmd), to submit that mere admission of shortage of raw material and consequential production cannot lead to demand of duty that could have been manufactured out of the raw material when there was no discrepancy in the stock of other raw materials or finished goods. 3. On the other hand, ld.JDR submits that what has been admitted need not be proved. For this purpose, he relied upon the Hon'ble Supreme Court decision in the case of CCE Madras Vs. Systems Components Pvt.Ltd. 2004 (165) ELT 136 (SC). In the case of Nissan Thermoware, the appellants were manufacturing Water Jugs and one of the raw materials was found short when compared with the stock of RG 23A Part I re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took a view that in the absence of evidence of clandestine manufacture and removal, duty demand cannot be sustained. As regards the decision in the case of Systems Components Pvt.Ltd, the issue in that case was not clandestine removal at all. In that case, the question was whether certain items were parts of water treatment plant or not. In that case, the Hon'ble High Court held that there was no investigation required. The assessee had admitted the classification. The issue involved was classification. For demanding the duty on finished goods, the taxable event is manufacture. Duty is payable when the goods are removed. Therefore, for demanding duty on the finished goods, at least there has to be some evidence of clandestine manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
