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2017 (7) TMI 157 - AT - Central Excise100% EOU - burning loss - difference between the permissible burning loss of 7.5% and actual burning loss of 15% - demand - Held that: - It is not the case of revenue that due to burning loss, any quantity of either brass scrap or processed rods has been diverted somewhere else instead of bringing to the factory by the appellant. For such situation, whether there is burning loss of 7.5% or even 15% that alone cannot be reason to demand the duty. The entire demand worked out by taking the difference of SION norms provided in the Foreign Trade Policy is not correct - As far as SION is concerned it provides with the theoretical input output norms that too for the purpose of import and export of the goods. Even when the imports are allowed as per the SION norms the actual consumption of the input in the export goods is always variable as compared to the ratio provided under the SION norms. Therefore there is always difference between the input output norms given in SION and the actual input output ratio in the physical manufacture of the goods. Therefore the SION norms cannot be applied in the facts of the present case. Appeal allowed - decided in favor of appellant.
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