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2018 (7) TMI 423 - AT - Central ExciseLiability of duty on Glass tubes - captive consumption - case of appellant is that Glass Tubes were being manufactured by them by Mouth Blowing process, which was exempted under N/N. 6/2002-CE dated 01.03.2002 - Statement of employee of the appellant, is to the effect that the manufacturing unit has started using the compressor from 01.04.2007 and prior to the said date, Glass Tubes were being manufactured by Mouth Blowing process. Held that:- Admittedly, the appellant has produced a bill dated 31.03.2007 issued by Rathi Industries, showing the sale purchase of the compressor. The adjudicating authority has simpliciter dismissed the same on the ground that the same was purchased on the last date of the financial year and as such, was manipulated - Revenue has not bothered to investigate at the end of the seller of the compressor so as to find out the fact as to whether the compressor was actually sold on the said date or not. There is also no restriction on sale purchase activities on the last date of financial year. No investigation was made by revenue, in which case the bill produced by the appellant has to be accepted as the correct reflection of facts. The manufacturing process in their unit have been done with the help of the compressor only with the effect from 01.04.2007, inasmuch as there is no other contrary evidence reflecting on the fact that compressor was being used in the factory prior to the said date - prior to 01.04.2007 the appellant was using Mouth Blowing process for the manufacture of the Glass Tubes, which process granted them exemption in terms of N/N. 06/2002. Manufacture of the Glass Tubes with effect from 01.04.2007 with the help of the compressor - the appellant claims that he would be entitled to SSI Exemption in which case no duty liability would arise on them - Held that:- For verification of the appellants said claim, which is dependent upon the computation of the clearances in a financial year, the matter remanded to the adjudicating authority to examine these facts - matter on remand. The penalty imposed on both the appellants set aside. Appeal disposed off.
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