TMI Blog2013 (11) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... al number of sugar bags of the sugar season 2000-2001 cannot be presumed and duty cannot be demanded on this basis when there is no other evidence regarding unaccounted manufacture or clandestine clearance – order set aside – Decided in favour of Assessee. - Appeal No.795/2006-EX (SM) - Final Order No.57944/2013 - Dated:- 18-9-2013 - Shri Rakesh Kumar, J. For the Appellant : Shri Bipin Garg, Advocate For the Respondent : Shri R.K. Mishra, DR JUDGEMENT Per Rakesh Kumar: The facts giving rise to this appeal are as under:- 1.1 The appellant are manufacturers of sugar chargeable to central excise duty. On 5/6.1.2002, their factory was visited by the jurisdictional central excise officers and stock taking of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty and also for imposition of penalty on the appellant under Section 11 AC on this count, and (b) also for confiscation of 5577 bags of sugar season 1997-98, 1998-99 and 1999-2000 not accounted for in the RG-I register and imposition of penalty on the appellant on this count. 1.2 This show cause notice was adjudicated by the Asstt. Commissioner vide order-in-original dated 31.08.2005 by which the above mentioned duty demand was confirmed against the appellant along with interest and besides this, 5577 bags of sugar were also ordered to be confiscated with option to be redeemed on payment of redemption fine of Rs.30 Lakhs. Besides this, penalty of Rs.5,00,000/- was imposed on the appellant under Rule 173 Q of the Central Excise Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no shortage as, as against the stock of 5,00551 bags mentioned in the register, the same number of bags were found. The department s allegation is, however, based on the fact that out of 500551 bags of sugar season 2000-2001, 5577 bags were bearing the markings of the sugar season 1997-98, 1998-99 and 1999-2000, which indicated that the sugar packed in these bags was of the previous sugar season stored for clandestine removal and equal no. of sugar bags of 2000-2001 sugar season have been cleared clandestinely. The appellant explained that very often empty bags of the previous sugar season are also used and in this case, while using the empty bags of the previous sugar season, the labourers have not changed the year. In my view, the expl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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