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2018 (10) TMI 635 - AT - Central ExciseSSI exemption - scaffoldings / propping equipments supplied to some of the construction companies on job work basis - case of appellant is that they have not undertaken any manufacture of goods and in fact the goods are manufactured by the job workers - Held that:- There is no mahazar drawn up to show that there were any machinery at the premises at the time of inspection. It is also not noted anywhere whether there were raw materials or finished products in the said premises of M/s. Lakshmi Scaff and Vel Scaff on the date of inspection i.e. 8.12.2006. If the department had conducted inspection in the premises, they should have drawn up a mahazar showing the stock of raw materials and finished products lying in the premises. So also the activities carried out in the premises should reflect in the documents prepared at the time of inspection. There is nothing to show that there were machines in the premises or raw materials and finished products. There is no evidence put forth by the department to show whether the appellant had engaged any labourers in the premises for carrying out the manufacturing activity. From the statement, not supported by any document, the adjudicating authority has vaguely presumed that Shri A. Ganesan has manufactured the impugned goods. The statement given by Shri A. Ganesan does not put forth any evidence that he has manufactured such goods. It is for the department to establish the clandestine manufacture of goods by the appellant. In the present case, the department has failed to draw up panchanama during the date of visit so as to establish that the appellant was manufacturing goods in the premises. Further, there is no evidence to show that he had engaged labourers for manufacture and supply of such huge quantity of goods - the strong probability is that the appellant had procured the goods from job workers for supply to the construction companies. Demand do not sustain - appeal allowed - decided in favor of appellant.
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