TMI Blog1995 (4) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... methaxazole and for the manufacture of which various inputs are used at different stages of processing. During the course of manufacture some solvents are recovered and also effluents are generated. Some of the effluents generated have some organic chemicals in sufficient quantities to be usable, while other effluents generated on account of their composition do not have any saleable value. He pleaded that the demand is based on the private records maintained by the appellants in respect of the solvents and effluents. This record he pleaded has entries regarding the details of the effluents and the solvents, namely quantity, persons who received the consignments, name of the consignee and also the signature of the representative of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartmental authorities had also made enquiries, and statements were also recorded from the consignees indicated in the sheets and one of the buyers M/s. Manjunatha Chemicals have stated that they had not purchased any solvents from the appellants and arranged tankers for draining out the solvents, while the another firm had admittedly purchased certain solvents. He pleaded that the learned lower authority has not entered any reasoned findings based on the enquiries particularly when the authorities were relying on the entries in the note book which formed the basis on which the duty had been demanded in respect of the goods covered by the entries where no sale amount has been shown. He pleaded that there is no proper appreciation of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a short point of law dispensing with the pre-deposit of the duty and penalty as pleaded by the learned Consultant above. 4. The learned DR pleaded that the learned Collector has given reasons for demanding the duty in Paras 16, 17 18 and stated that notwithstanding the non-discussion of all the evidence, the learned lower authority s order is maintainable in law. 5. We have considered the pleas made by both the sides. We observe that the duty demanded from the appellants is based on their own private records which reflect the production of the recovered solvent and the effluents on day-to-day basis. Entries also show the names of the consignees and in some cases the amounts recovered by way of sale of these goods. The enquiries made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer authority while holding against the appellants, has observed as under :- The solvent is a bye-product derived during the process. It may be true that the solvent is a weak organic compound. Nevertheless, it retains the characteristics of the solvent to certain extent and it is usable in certain industries. The goods should have been cleared only on payment of duty. If they were unfit for consumption they should have been destroyed with the knowledge of the department. It is seen that the learned lower authority has conceded that the solvent as such emerged after the reaction was a weak organic compound and that it retains the characteristics of the solvent to certain extent. This itself shows that what emerged as a bye-product was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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