TMI Blog2016 (1) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... The stock of work-in-progress keeps on changing during the manufacturing process from one stage to another. A combined examination of items in various stages of processing is required. No finding has been recorded on this as well as on the claim of certain destructive tests carried out by assessee - Commissioner (Appeals) held that no clandestine clearance of castings has been evidenced, he upheld demand of duty on castings without any reasoning. His finding that cenvat credit available on ingots is to be reversed is without any basis and, in any case, the final confirmation of demand of duty on castings using such finding is totally misplaced. - Decided in favour of assessee. - Excise Appeal No. E/2850/2006-EX(DB), Excise Appeal No. E/38 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation of such goods and accordingly held allegation of clandestine removal of aluminum casting is not sustainable. However, in para-7 of the same order he held regarding work in progress, that demand is to be confirmed to the extent of cenvat credit available on aluminium ingots and not on aluminium castings. He accordingly confirmed demand of ₹ 4,27,092/- with equal penalty. The ld. Counsel points out that this amount is actually duty demanded on castings as calculated in para 1 (d) of show cause notice dated 1.7.2005. Such demand, he submitted, is against Commissioner (Appeals) own finding that demand can not be made on castings in the absence of any supporting evidence of clandestine clearance. Regarding other two issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of castings has been evidenced, he upheld demand of duty on castings (para-7 of order) without any reasoning. His finding that cenvat credit available on ingots is to be reversed is without any basis and, in any case, the final confirmation of demand of duty on castings using such finding is totally misplaced. 8. Accordingly, we find that assessee succeeds in contesting the impugned order. We allow the appeal filed by asssessee. 9. On Revenue's appeal, we find that an amount of ₹ 1,22,136/- was cenvat credit wrongly taken by assessee as inputs on tubes whereas the same are eligible for credit as capital goods. Hence, this 50% amount is to be taken in the next financial year. On being pointed out, the assessee reversed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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