Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1212 - CESTAT KOLKATAClandestine removal - process loss - appellant is the manufacturer of M. S. Bars by hot rolling of M. S. Ingots. That hot rolling leads to generation of mill scale waste which is normally 1 to 3% of the weight of the finished product. That appellant has claimed such a loss due to mill scale generation as 10%. It is the case of the Learned AR That generation of 10% mill scale, against a normal generation of 1-3% of mill scale, is not justified at all and the material to the extent of 8% excess claim has been used for manufacture of M.S. Bars which have been clearly / removed clandestinely - whether mill scale generation of 10% claimed by the appellant is justified? Held that: - It is observed from the case records that no scientific literature / data has been relied upon by the Revenue as to what should be a normal range for generation of mill scale in a hot rolling process. No experiment has been done by the Revenue in support of their case that mill scale generation should be in the range of 1 to 3% only. There is no variation in the raw material stock and also no seizure of clandestinely removed finished goods. On the contrary Respondent has intimated to the Project Management Cell UNDP/GEP Project (Steel), GOI, Ministry of Steel that they are incurring 10% loss. In the absence of any evidence to the contrary it cannot be said that mill scale generation will always be 1 to 3% in the hot rolling processes. It has thus been rightly observed by the first appellate authority in Para 6 of the OIA dt 10/6/13 that onus to prove clandestine manufacture & clearances of finished goods lies with the department. Clandestine removal cannot be upheld on the basis of presumptions, assumptions & surmises - appeal rejected - decided against Revenue.
|