TMI Blog2005 (7) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... 58,700/-. There was also an allegation that 7794.15 Kgs of pre-cured tread rubber and repairable strips of pre-cured tread rubber was found at the premises of the appellant in excess of production accounted in RG I Register kept with an intention to remove it without payment of duty of Rs. 75,260/- which has been demanded. There is another allegation that the amount of Rs. 2,09,462/- should not be demanded being the duty on 21696 Kgs of tread rubber or pre-cured rubber that had been manufactured and cleared clandestinely without payment of duty as per the shortage in physical stock of raw materials with respect of Form IV register. The Commissioner after due examination dropped the demand of Rs. 3,22,025/- as there was no evidence available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead rubber involve combination of various other raw material in the correct proportion. The revenue has not taken into account these factors including the absence of excess electricity consumption factor and use of carbon black for production of goods. He has also noted that the sulphur is not the main ingredient, the main ingredient is the raw rubber and carbon black. Having held so, he should not have confirmed the duty demand of Rs. 1,50,548/- solely on the basis of the entries which have not been made in the statutory registers. With regard to the excess found, the explanation given was that the pre-cured tread rubber and repairable strips had been received as replacement and that had been sufficiently explained by production of documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s clandestinely to purchasers has been brought forth, the higher electricity consumption has also not been found. Therefore the finding recorded by the Commissioner for dropping the demand is a correct order. There is no merit in the Revenue appeal and the same is rejected. The finding recorded by the Commissioner on this point should have been applied with regard to the confirmation of demand of Rs. 1,50,548/- which pertain to excess produced tread rubber and strips which were found in the premises. The appellants had clearly explained with evidence that this material had come for replacement and evidence had been produced. 4. We have carefully gone through the records and accept the plea of the appellants that to confirm clandestine rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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