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M/s Span Intermediates Pvt Ltd, Shri Krishnadev S. Choubey Versus Commissioner of Central Excise And Service Tax, Daman

2015 (10) TMI 1841 - CESTAT AHMEDABAD

Clandestine removal of goods - discrepancy in RG-1 register - semi finished goods - It is the case of the appellant that all goods mentioned in the Blender register do not became ripe for clearances till the blended dye sample is approved by the customer. That in case of non approval the batch prepared is not cleared. It is also the case of the appellant that a new batch is prepared as per the desired quality of the customer either by improving the earlier batch or otherwise and earlier entry ma .....

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atendu Patra, AR ORDER Per H K Thakur These appeals have been filed by the appellants against OIA No. DA/06-07/DMN/VAPI-I/2011-12 dated 21.04.2011 passed by Commissioner (Appeals), Vapi; as first appellate authority; under which OIO No. Vapi-I/OA/35/2007-08 dated 31.12.2007 decided by the Adjudicating authority has been upheld. Under OIO dated 31.12.2007, Adjudicating authority confirmed a demand of ₹ 1,55,368/- against the main appellant M/s. Span Intermediates Pvt. Limited, Vapi, along w .....

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s the manufacturer of Synthetic Organic Dyes (S.O. Dyes) as per the specifications of the customers. That during a visit of the Central Excise officers to the factory premises of the main appellant on 20.3.1999, physical stock verification was done and it was observed by drawal of a Panchnama that there was excess stock of finished S.O. Dyes in the factory than what was recorded in the RG-1 register maintained by the main appellant. That the officers also noticed 6263 Kgs. of S.O. Dyes, valued a .....

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y the Revenue. That the second show cause notice for ₹ 1,55,368/- was decided under OIO dated 31.12.2007 and confirmed under OIA dated 21.4.2011 against which the present appeals are filed by the appellants. 2.1 It was the case of the appellant that lower authorities mainly relied upon the blender register/notebook which reflects the semi-finished goods and can not be the basis for entering the same in RG-1 register. Moreover, the said notebook was exclusively meant for production of the g .....

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processes and the same can not be considered as the base for entries in RG-1 register. Appellants also argued that no cross-examination of the investigating authority was permitted to prove their side. They contended that demand can not be confirmed and penalty can not be imposed on the basis of recorded statements where cross-examination of persons have been denied. Learned Advocate relied upon the case law of Abir Chemicals Limited vs. CCE, Surat - [1998 (102) ELT 406 (Tribunal)] and argued t .....

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through Para-4 of the CESTAT order in the case of Abir Chemicals Limited vs. CCE, Surat (supra) to argue that there was no clandestine clearance as the goods recorded in the Blender register and not entered in the RG-1 register did not reach RG-1 stage. That statements of Shri Krishnadev S. Choubey, Technical Director-cum-Authorised Signatory has not admitted anywhere that goods entered in Blender Register were ever cleared clandestinely. 3. Shri Lalatendu Patra (AR) appearing on behalf of the .....

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as indulged in clandestine clearance of the S.O. Dyes mentioned in the Blender Register which were not recorded in the RG-1 register. It is the case of the appellant that all goods mentioned in the Blender register do not became ripe for clearances till the blended dye sample is approved by the customer. That in case of non approval the batch prepared is not cleared. It is also the case of the appellant that a new batch is prepared as per the desired quality of the customer either by improving t .....

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ered in the RG 1 Register as these goods are fully finished and also packed ready for marketing. The duty demand thereon is upheld. As regards S.O. Dyes packed in HDPE Woven bags under confiscation the matter is not entirely free from doubt. It is seen that in Chapter 32 of Central Excise Tariff Act 1985, Chapter Note 6 to that chapter shows that addition of diluants or mixing of dyes to make them ready for use is a process of manufacture. The Tariff description of sub-heading 3204.29 is a resid .....

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6-1996). They had also taken the plea that the goods found in HDPE bags were only tied but not packed and sealed as done for fully finished marketable goods. The Commissioner in the impugned order relying upon Tribunal decision in the case of D.S. Screen v. Collector 1990 (56) E.L.T. 475 has held goods are to be entered in RG 1 even before testing. But we feel that in the context of the Tariff Structure relating to S.O. Dyes, as noted above, the relevance of standardisation vis-a-vis accountal i .....

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