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2017 (1) TMI 652 - AT - Central ExciseClandestine removal of EDNs, R-cords/Detonator Fuses, Slurry explosives etc - failure to record the finished goods in the RG-1 register - The allegation of duty evasion against the Appellant company and duty demand against them is based on the documents called incentive sheets from 1995-96 to 1997-98 period, recovered from the residential premises of Shri M.L. Agarwal, Dy. General Manager. Held that: - The quantity of production is to be recorded in RG-1 register after it has reached the stage of completion of manufacture. The goods cannot be considered as fully manufactured unless the quality control is completed and it is properly packed. Moreover, the goods are in the nature of explosives and the Chief Controller of Explosives had laid down strict conditions for quality control as well as packing - incentive sheets cannot be a true reflection of the quantum of explosives manufactured. No investigation appears to have been conducted at the end of the transporter also. Cross-examination of witnesses - Held that: - It is well settled law that cross-examination has to be allowed normally before using such statements for confirmation of demand. If the witnesses do not turn up for cross-examination it is open to the Adjudicating Authority to proceed with the adjudication without relying on those statements. The onus is definitely on the Department to establish manufacture and clearance of such goods and also the receipt of payments. Demand fails - appeal allowed - decided in favor of assessee.
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