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2014 (7) TMI 570 - AT - Central ExciseDuty demand - Shortage in stock - input output ratio - procurement of duty free goods for export - general of wastage - manufacture of EAU De Perfume containing alcohol 78% - Held that:- there is no evidence adduced by the department that any quantity of shortage was found in the Appellant's premises. Each & every raw material and inputs procured duty free have been fully utilized in the manufacture of export goods, wastage generated during the process of finished exempted goods has been fully accounted for and the duty has been paid by the Appellants. The duty has been demanded on shortage/wastage whereas shortage of goods would only mean that there has been either clandestine manufacture and utilization of goods not declared to the authorities or that there has been clandestine clearance of raw materials or inputs as such. There is no such charge of either in the Show Cause Notice or in the Order-in-original. Wastage generated during the course of manufacture of the finished goods out of raw material procured duty free for export with permission of the department, however the Appellants have not proved the input output ratio 100:100 but Appellants have already paid duty on the price of the wastage occurring in the course of manufacturing, hence there is no short payment of duty on this ground. I further find that wastage/shartage occurred during the course of the manufacture of the finished goods for export is also covered under the para 2.2.2. part VI Chapter 7 Central Excise Manual, as the wastage is genuine has to be accepted as unaccounted loss, moreover the Department has not proved anywhere any clandestine removal of raw material or finished goods, therefore the demand is not sustainable under Section 11A of Central Excise Act, 1944. - Decided against Revenue.
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