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2011 (11) TMI 570 - AT - Central ExciseDuty demand - Shortage of goods - Held that:- Allegation pleading of the appellant before him was that the factory was under physical control of the department and machine was sealed by Range officer on 28-9-2009 while investigation was conducted on 13-11-2009. Tobacco was no doubt an essential ingredient of cigarettes. The appellant’s plea before first appellate authority was that raw material for manufacture of cigarettes resulted with no inventory discrepancy. It was also submitted that cigarettes cannot be manufactured from tobacco alone. But the appellate authority upheld the adjudicating finding that raw material like cigarette paper, filter rod and filter paper can be arranged from outside for manufacture of cigarettes - Revenue certainly would have been benefited had they found evidence in respect of removal of goods while physical control of factory was with departmental officers. Such evidence is not on record. Even to apply ratio of judgment of Hon’ble High Court of Madras in the case of Alagappa Cement Pvt. Ltd. v. CEGAT, Chennai - [2010 (10) TMI 131 - MADRAS HIGH COURT], there is no preponderance of probability of tracing of tobacco after that is alleged to have vanished from factory of the appellant which is stated to have been controlled as above. Whereabout of tobacco could not be traced - Decided in favour of assessee.
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