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2019 (1) TMI 60 - AT - Central ExciseClandestine removal - manufacture of Calcined Petroleum Coke from Raw Petroleum Coke - period of dispute is from June 1991 to October 1993 - Held that:- It is admitted fact on record that weight recorded in weighment slips was gross weight, whereas the weight reflected in gate passes was net weight. The Central Excise duty is to be paid on net weight because the purchaser of the goods has paid for goods which are covered by net weight and the demand is not confirmed on the basis of net weight. The demand is confirmed on the basis of gross weight, therefore, the said confirmation is not sustainable - confirmation of demand of ₹ 64,000/- along with equal penalty is set aside. Demand of around ₹ 16 lakhs of Central Excise duty - discrepancies in the weight reflected in clearances shown in RG-1 Register and the clearances arrived at on the basis of packing material utilized as reflected in Bag Register - Held that:- During the relevant period there was one rule namely Rule 173E of Central Excise Rules, 1994 on statute which required to declared principal raw material required for manufacturing of unit quantity of final product. The provision of law was that through a notification CBEC would declared principal raw material used in respect of specified final product and on the basis of utilization of principal raw material, there was provision under said rule to estimate goods manufactured - demand which is around ₹ 16 lakh of Central Excise duty and equal penalty imposed are set aside. Appeal allowed - decided in favor of appellant.
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