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2018 (12) TMI 850 - AT - Central ExciseClandestine removal - Wire Rods alleged to have been removed by the Appellant clandestinely, were manufactured out of Aluminium Ingots received by it from principal manufacturer for conversion on job work basis under N/N. 214/86-CE dated 25.03.1996. Held that:- There is nothing on record to suggest that the Appellant clandestinely sold the value added Aluminium / Alloy Wire Rod manufactured from out of Aluminium Ingots o 99.7% purity to any other outside party. There is no allegation of the presence of any other Conductor manufacturer in the vicinity, to whom the Appellant could possibly sell such a huge quantities of Wire Rods without payment of duty. The SCN does not place on record any evidence of unaccounted procurement of Aluminium Ingots / other inputs by the Appellant and the source from which the Appellant could procure such unaccounted for Ingots/inputs for use in the clandestine manufacture of Wire Rods. There is no reference of any buyer who might have purchased the allegedly clandestinely removed Wire Rods by the Appellant. There is nothing on record to show unaccounted for receipt of sale proceeds by the Appellant from any source and there is nothing on record to corroborate clandestine manufacture of such huge quantity (493.404 MT) of Aluminium Wire Rods by the Appellant. Taking into account the burning loss and generation of dross approximately at 2%, the Appellant had only 1.5 MT of carried over stock of Ingot/ Scrap as on 01.04.2003. It is also a matter of record that the Appellant did not purchase any Ingot / Scrap on its own account between April to July 2003. With only 1.5 MT of carried over stock of its own purchases of Aluminium / Scrap as on 01.04.2003, the Appellant could not have manufactured 493.404 MT of Wire Rods alleged to have been removed without payment of duty, particularly in the absence of any evidence whatsoever of record to even remotely indicate that the Appellant purchased Aluminium Ingot / Scrap from any Source other than those duly reflect4d in its statutory / private records. The finding of the Ld. Commissioner that the allegedly clandestinely removed 493.404 MT of Wire Rods were not the job-worked goods, is manifestly without any substance. Appeal allowed - decided in favor of appellant.
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