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M/s. Century Metal Recycling Pvt. Ltd, Sh. Mohan Aggarwal, MD, Shri Tulsi Ram Yadav, Deputy Manager (PPC) , Shri Virender Kumar Rajpal, Earlier Working as General Manager (Material) J.K. Khatri, Vice President Versus CCE-Delhi-IV

Clandestine manufacture and removal of Aluminum Alloy ingots and Zinc Alloy ingots - validity and genuineness of information, records and documents - onus to prove - The raw material used were aluminum scrap and aluminum ingots and they availed CENVAT Credit on these raw materials being inputs. - Availing Cenvat Credit without receipt of inputs - sale of abnormal quantity of Ash and Residue and burning loss amounting to more than 15% of the total consumption of raw material.

Held that .....

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the select statements of persons, we find that the data applicable to a particular period was extrapolated for the whole period of demand by presuming a standard projection. This apparently is not legally sustainable.

When the allegation of unaccounted clearances and substitutions of inputs of huge quantities were made, the minimum requirement is to have independent support of such allegation by way of evidence of transport, cash transaction, third party documents or affirmations etc. .....

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but these statements were not put to test by way of cross-examination and analysis or supported by documentary evidence. The statements could be of help if they support evidences which exist and which requires re-affirmation. In the present case, the statements which deal with interpretation of data in pen drive have not thrown any substantial ground to the case built up by the Revenue.

Revenue failed to prove its case - demand set aside - Decided in favor of assessee. - E/Misc/50076 .....

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ingots. The raw material used were aluminum scrap and aluminum ingots and they availed CENVAT Credit on these raw materials being inputs. The appellants imported the aluminum scrap and purchased Aluminum ingots from M/s. Bharat Aluminum Company (herein after referred to as M/S. BALCO) and M/s. Hindalco Industries Ltd. (hereinafter referred to as HINDALCO) and various other dealers. They were also doing job work of manufacturing aluminum Alloy ingots and Zinc Alloy ingots for their sister concern .....

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is CENVAT account (iii) That appellants had shown sale of abnormal quantity of Ash and Residue and burning loss amounting to more than 15% of the total consumption of raw material. Whereas the burning loss in similar process accounts to be 2-3% and Ash and Residue up to 5%. That, the cumulative wastage or burning loss cannot be more than 7-8% (iv) That the appellants were taking credit on the basis of invoices issued from their sister concern, GMI, without actual receipt of goods. It was discove .....

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ther documents under panchnama. Subsequently a search was conducted on the next day (25.06.2008) for the purpose of stock verification of raw material lying in the factory premises. Stock verification was done on daily basis and concluded on 4.7.2008. 3. After stock taking, it was found that a total stock of Aluminum scrap/ingot of 1082895 kgs. was lying in the factory premises of appellant. As per RG23A Pt. I (Daily Raw Material Register) the total stock of Aluminum scrap and CG ingots as on 25 .....

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appellants were further processing this aluminum dross by which different grade of dross namely champak, Mota and Barik was obtained. The loose unprocessed aluminum dross was weighed and found to be 40200 kgs. Also 49583.6 kgs of Barik dross, 11128 kgs of Chamak and 50997 kgs of Mota dross and 4185 kgs of Aluminum dross ingots were found unaccounted in records. These were seized on 2.08.2008 4. A show cause notice dated 28.11.2008 was issued to appellants proposing reversal of CENVAT Credit tak .....

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reme Court and while dismissing the SLP, the Honble Supreme Court observed that the department was at liberty to issue a further show cause notice if necessitated. A show cause notice dated 5.2.2009 was issued raising the allegation that the job workers have not returned some quantities of raw material to the appellant. Another show cause notice dated 17.3.2010 was issued which pertains to the present appeal. The said show cause notice dated 17.3.2010 issued invoking extended period of limitati .....

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1,08,68,346/- on Aluminum scrap availed and utilized is inadmissible as these were diverted by the appellant without issue of sale invoice or any accounting thereof. (iv) CENVAT Credit of ₹ 7,40,68,846/- on the balance quantity i.e., 4427307 kgs of Aluminum scrap availed and utilized is inadmissible as these were sold unaccounted during the period April, 2006 to April, 2008. (v) Appellants are liable to pay Central Excise Duty of ₹ 4,17,58,397/- on account of duty short paid on clear .....

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00 pages long without sequential coherence and having over lapping findings with not so clear analysis of facts. 6. It would be worthwhile to give a brief over view of the fact and evidence placed before us. In this case all the statutory records were maintained correctly and there is no allegation of incorrect entries in the statutory records. The appellant was importing aluminum scrap (input) and was procuring aluminum ingots locally. Whatever figures were entered as inputs received as per bil .....

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ment, the figures for RG-1 register was provided by PPC department. This department used to maintain every data from the issue of raw material to the sale of final products. Such data was being maintained in a pen drive by the PPC department headed by Sh. Tulsi Ram Yadav, Assistant Manager of the appellant company. The said pen drive was resumed on 24.06.2008. The data contained in the pen drive was retrieved by the department and the above data reflected the day to day purchase, consumption of .....

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ap and aluminum ingots. Aluminum scrap is imported and aluminum ingots are procured indigenously. The basic raw material used by appellants for manufacture of Aluminum Alloy is Aluminum scrap. The entire aluminum scrap was imported. It is their case that they did not use indigenous aluminum scrap because only two types of aluminum scrap is available indigenously, i.e.., utensil scrap and wire scrap. Utensil scrap is not suitable for manufacture of aluminum alloy and wire scrap is costlier than t .....

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ich were segregated from the scrap were used for making master alloys or used directly. 8. The appellants manufactured different types of Aluminum Alloy such as ADC12, HS1, AC4B, LM6, LM24, etc. Besides aluminum scrap, the appellant used CG aluminum ingots which were procured from Hindalco, Balco etc. The iron content in the CG ingots varied from 0.2% to 0.5%. CG ingots of high iron content of 0.4% to 0.5% was categorized as Dil. ingot and were used for diluting the alloys where higher iron cont .....

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ormity of chemical composition while manufacturing. The making of Aluminum alloy required copper, manganese and magnesium. Due to the difference in melting temperature of these elements and aluminum, the appellant used to manufacture copper master alloy, magnesium master alloy, manganese master alloy etc. to ensure uniform chemical compositions. The manufacture of different types of master alloys were recorded in the statutory records and the same was then issued for manufacture of aluminum ingo .....

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or further metal extraction. 11. It is alleged by the department that the appellants were mis-declaring the imported aluminum scraps Twitch whereas in reality they were importing aluminum scrap zorba which is a restricted variety of scrap for import. Twitch variety do not contain more than 5% of free zinc, free magnesium etc. and may contain at least 95% of aluminum. On the other hand any scrap containing less than or equal to 90% aluminum is zorba variety. On overseas enquiry it was revealed th .....

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ellant was procuring Aluminum scrap from market, without accountal thereof and removing clandestinely high value goods like CG ingots, imported scrap by substituting zorba quality of scrap in their manufacture. They were clearing aluminum dross in the guise of ash and residue without paying duty. As the entire case of Revenue is based on the data received from pen drive for better appreciation of the discussion, the various excel files found in the data of pen drive and referred in the impugned .....

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namely Received , issue and actua (e) File name -Raw material classification VKS Sheet-1 which contained one sheet. (f) File name HGS For June, 2008, MARKETING QUATATION FILE-decrypted.XIS (Sheet)ADC-12-A (g) File -Recon-PP (Physical adj 2005-06) Stock Reconcil April to December Stock Reconcil April to March, 2008 and 2009. 12. Besides the above, loose documents were also seized which included Daily Material Receipt and Issue Advices and Miscellaneous documents. 13. For the sake of convenience .....

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were actually consumed in the manufacture of final product. Out of the remaining quantity of 1705.881 MT of CG/EC ingots a quantity of 90.970 MT was found as balance (as on 31.5.2008) stated in Daily Stock sheet of pen drive. Therefore the balance of 1614.911 MT of CG/EC ingots has not been used in the manufacture of final products. Therefore CENVAT Credit of ₹ 3,39,24,526/- on these CG/EC ingots not used in manufacture of final products is not available to the appellants. It is also the c .....

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nder the heading Aluminum . No records were intimated/presented to the department showing segregation of scrap, generation of dross. All these were maintained by PPC Section in the pen drive. 14.2 The data relating to the consumption of CG ingots was received from the pen drive in the excel file name LOSS MONTHWISE-1 (Sheet name TOTAL ). The data of purchase of CG/EC ingots was taken from the purchase invoices. On 31.5.2008, the appellant had closing balance of 90.970 MT of CG/EC ingots as recor .....

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ound that appellant has not issued any sale invoices for sale of CG/EC ingots on these dates. For eg., as per excel file DAILY STOCK (April, 2008) Sheet Issue for the month of January, 2008 shows dispatch as follows: 13.01.2008 30 MT 14.01.2008 20 MT 15.01.2008 20 MT 16.01.2008 30 MT 28.01.2008 30 MT 30.01.2008 22 MT 14.3 But it was found that appellant has not issued any sale invoice for the sale of CG/EC ingots on the above dates. On scrutiny of the consumption data in the excel file LOSS MONT .....

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sumed. To hide the fact of diverting/removing of CG/EC ingots, the appellants had devised a system to club the CG/EC ingots with the quantity of Aluminum scrap in their Daily Raw Material Register (RG 23A-Pt.1). On analysis of the data stored in pen drive it is found that appellant had a closing balance of 100 MT or less of CG/EC ingots everyday. Therefore, taking a standard of 100 MT of balance per day the data in Annexure-3 of show cause notice was calculated for the period (April, 2006 to May .....

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part of appellant. The department has completely failed to bring on record any positive evidence of clandestine removal of 1614.911 MT of CG/EC ingots. In the absence of any positive evidence regarding dispatch of the said quantity of CG ingots from the premises of the appellant, such as any statement of transporter to support the removal of CG/EC ingots from the factory, or the statement of any person alleging the purchase of any CG ingots from the appellant, or of any payment received for sal .....

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h the raw material issued as per RG 23A Part-1 maintained as per law. It is further admitted by department that the quantity of finished goods manufactured during the above period is found to tally with the quantity of finished goods entered in RG-1 register maintained for production and removal of finished goods. That the case of department is fully based on speculations, surmises and erroneous inferences drawn from the documents seized. 14.6 The appellant manufactures aluminum alloy ingots for .....

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e raw materials charged in the furnace has the correct composition which will result in the manufacture of the aluminum alloy ingot of desired specification. In case of any variation in composition of the finished product, the whole material charged which may vary from 6MT to 40MT may have to be rejected. It is therefore of critical importance to prepare each batch of the charge mix keeping in mind the composition of finished product. 14.7 It was necessary for appellant to keep a record of segre .....

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which is to decide the optimum use of raw material. The said requirement could not have been kept in the statutory records as there is no requirement under the Act or the Rules to keep the said information in statutory records. That it was also not practical to keep the information in such records. 14.8 The scrap and CG ingots were segregated according to their chemical property both manually and by using machines. The segregated scrap is given to production department for melting and is further .....

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3 M of Zinc Master Alloy which is reflected in the RG-1 register under the heading scrap melt. A quantity of 255.032 MT of aluminum CG ingots was consumed to make Zinc Master alloy taking melting loss @ 2.5%. This use of CG ingots is over and above the use of CG ingots for manufacture of aluminum alloy ingots. It is submitted that the excel sheet LOSS MONTHWHISE-1 would show that appellant has consumed the entire quantity of 7851.640 MT CG ingots procured from Hindalco, Balco and other dealers i .....

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s consumed 7730.931 MT 14.9 Out of 7851.640MT of CG/EC ingots consumed 643.012MT was reclassified according t o their iron content as D.ing (Dilution ingots) because the same was containing high iron. These could be used only for correction/dilution. The segregation of 643.012 MT of D.ing is supported by data of pen drive. Again as per data 4961.310 MT of dross was generated. Out of this 1853.243MT dross was processed by pulverizing to generate 1260.25 MT of dross which was directly used in manu .....

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ng used in house, it was not necessary to maintain separate record. That therefore, the inference drawn by department that appellant had clandestinely procured 1669.490 MT of dross ingots locally is baseless. The production of Copper master alloy and manganese master alloy and other alloy using CG ingots is reflected in statutory records as scrap melt. The allegation that appellant diverted imported scrap and substituted with raw material purchased from local market is perverse as the value of h .....

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not taken any such objection. According to appellant u denotes underprocess . The entire demand on this issue is based on the assumption that appellant had procured huge quantity of raw material without bills, and had clandestinely removed a similar quantity of input material comprising of CG/EC ingots, high value items segregated from imported scrap. There is no evidence to establish the removal of such huge quantity of cenvatable inputs which cuts the root of the allegation. 14.11 The allegat .....

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,666/- is not admissible. 15.1 Case put forward by Revenue On perusal of records it was found that appellant was selling elements like copper, Manganese, Zinc etc which were sorted from the aluminum scrap procured for manufacture of final products, without reversing the credit. The excel file RECON MONTHLY DROSS (Sheet April, 1) showed that several elements like Brass, Lead, Stainless Steel, Magnesium, etc obtained from sorting of the scrap was sold by appellants during April, 2007 which were sh .....

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ting of the imported scrap. Further, the LOSS MONTHWISE-1 (Sheet TOTAL) did not show consumption of these sorted material which would establish that these were not used in manufacture of final product. As the sorted material was not found used in manufacture, or stocked in the factory the only conclusion possible is that these have been removed clandestinely without issue of sale invoices. 15.2 The appellants were engaged in import of Zorba variety misdeclaring it as Twitch variety of scrap out .....

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of aluminum scrap is completely baseless and without any material on record to substantiate or corroborate this. The department did not find any discrepancy in raw material in spite of complete verification of raw material. There is neither any evidence of sale of sorted out material nor any evidence of procurement of raw material for substitution. The appellants have filed manufacturing process by flow chart dated 1.4.2006. This chart shows that after procuring raw material the same is subjecte .....

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these are reflected in RG-1 register. It is submitted that appellant used, copper, zinc, Manganese CU/BR Jali, Brass etc in the manufacture of aluminum alloy ingots also in production of master alloys. 15.4 Further, that if the appellant had removed and sold such huge quantity of sorted material without issuance of bill, the department ought to have found shortage in stock while verification of stock. The contention of the department that in order to cover the clandestine removal and sale of CG .....

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into consideration the reply of the appellants and is not sustainable. 16. Issue No. 3 The appellant availed and utilized cenvat credit of ₹ 1,03,10,874/- on Aluminum Scrap of 6,98,393 kgs and the same was diverted without issue of sale invoice and without accounting. Therefore, the credit is not admissible. 16.1 Case put forward by Revenue:- On scrutiny of the excel file DAILY STOCK (APRIL 2008)-decrypted and DAILY STOCK (May 08)-decrypted (Sheet-RECEIVED) along with their DAILY MATERIAL .....

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ADVICE of these quantities without actual receipt thereof. The DMR resumed in the form of loose sheets showed hand written entries made on left side and also right side on the bottom of pages. So also against certain items there were tick mark whereas some items were marked with a cross. The demand on this count is calculated on two grounds (i) the raw material was not received as per above stated excel file of pen drive, whereas the same is seen entered in their statutory record involving cred .....

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dit of ₹ 1,03,10,874/- (i.e., 108,68,346-557472) was not admissible as this quantity though entered in statutory records was found either striked off or crossed or not ticked in the excel file DAILY MATERIAL RECEIPT ADVICE Sheets and also not found entered in the RECEIVED Sheets of the excel file. 16.3 Submission by Appellant The department has arrived upon entirely wrong conclusion on the tick mark, strike off mark etc seen made in the DAILY MATERIAL RECEIPT ADVICE (DMR). The PPC updates .....

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ntained in PPC excel sheet. Items not cleared are identified as Hold board which is on top of the material. Subsequently, when these items are segregated it is mentioned by hand on right hand side bottom, and on the basis of this noting PPC enters in the stock account since they are now segregated and available for production. As regards hand written inscriptions on left side bottom of DMR, these are items which have been issued to production from under process stock. In case any material out .....

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re issued from RG23A Part 1 for production or transferred from cold refining department to production department. These quantities are included in the under process (u) column in the excel sheet. The quantity entered in RG23A Part-I register but not shown as received in excel sheet is because those quantities are not cleared by Quality Control Department. Therefore, the inference drawn by the Department that the difference between the quantities shown as received in RG23A Part-I and the quantiti .....

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scrap, the same has been sold/diverted/unaccounted without issue of sale invoices and that therefore the credit is not admissible. 17.1 Case put forward by Revenue: Upon investigation it was found that appellants had clandestinely removed the non-usable materials from sorted out Aluminum scrap received in factory upon which credit was taken and they have not reversed the credit on such quantity. In two issues stated above a total quantity of ₹ 45,88,173/- kgs had been either removed clande .....

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, 2006 to April, 2008. This quantity of 90,15,480 kgs unaccounted sale of raw materials included 45,88,173 kgs of the two issues stated above and the balance quantity is 44,27,307 kgs, which is the sorted material sold clandestinely. In these excel file u denotes unaccounted and figures in column u of the row in purchases contain the data of unaccounted purchases of raw material made by appellants. Therefore, it can be inferred that the row Sale and the column u against it denotes unaccounted sa .....

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rtment for its convenience has arrived at the conclusion that 9015480 kgs of raw material was received unaccounted. After deducting 45,88,173 kgs of which duty has been already demanded on the first two issues, the balance quantity of 4427MT is taken for raising this demand. On the very face of it, this allegation is absolute absurd since according to the department itself, there is no evidence for removal of 4427 MT or any part thereof. The department has mainly relied on the quantities shown i .....

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ipt 9664.41 Purchase 3044.12 Issue 5581.04 Sale 389.22 9014.38 17.3 This chart would make clear, that the expressions, purchase is for receipt and the expression sale is for issue. It does not denote purchase from outside or sale to any outside party. Receipt denotes, receipt of raw material by the production department for production and sale denotes issue of under process material or rejection etc for further processing. This has been explained in detail in the statements given by Sh. Mohan .....

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he Cold Refining Sheet D when transferred to production department Sheet C, it was transferred as under process material and entered in Column u in excel sheet. That therefore, the case put forward by the department that Column U in the data of pen drive denotes unaccounted raw materials is not supported by any evidence. 17.4 The absurdity of the departments allegation is evident from the consequent allegation that the appellant procured practically the same quantity of scrap from the market fo .....

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re the allegation that appellant diverted 4427 MT of sorted aluminum scrap and sold them without bills is an allegation without any sense. 18. Issue No. 5 The appellants cleared aluminum dross in the guise of ash and residue and thus short paid duty of ₹ 4,17,58,397/-. 18.1 Case put forward by Revenue In the process of manufacture, aluminum dross is generated and these are categorized into three by the appellant according to their aluminum content. Chamak category has high percentage of al .....

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alloy ingots, but also that they used the same in their correction process. 18.2 On scrutiny of data contained in pen drive it was found that appellants sold Aluminum dross without being shown in ER-1 as excisable goods. The quantities of sale of aluminum dross found handwritten on the loose papers seized matched with the sale invoices issued for Ash and Residue . The quantities of sale of aluminum dross for the month of April, 2007 exactly matched with sale of Aluminum dross in data of pen driv .....

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rned DR was fair enough to concede that aluminum dross is not excisable as per the decision of the Supreme Court in 2006 (203) ELT (S.C) CCE Vs. Aluminum Co. 18.4 Submissions by Appellant The inference is drawn by department on the basis of generalization that the appellant had raised bill for sale of ash and residue. It is alleged that in fact appellant had sold aluminum dross at higher rate seen from hand written sheets at Page 51 to 53 of RUD 89. The department has calculated the differential .....

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, 2006 to May, 2008 appellant sold ash and residue to various job workers. After recovery of metal from dross, the remaining quantity of ash and residue was returned to appellant. Further, the department alleges that the entire quantity of ash and residue sold by appellant is aluminum dross and demand is raised for the same. This can never be correct from the process of manufacture production ash and residue has to be generated. In view of the decision laid by the Supreme Court in Aluminum Co. L .....

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the arguments, explanations sought for on specific issues were not forthcoming with any clarity. We find that the data retrieved from the pen drive was the main source of various allegations and later confirmation against the appellant. Large number of statements have been recorded which were selectively quoted to support the conclusions drawn by interpreting the data in the pen drive. 21. In this case, we find both the parties, namely, the Revenue as well as the appellant agree that data in the .....

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tmental movements of various materials. The appellant strongly contended that their statutory records correctly reflect the receipt, consumption and closing balance of various items. The statutory records denote summary details whereas the private records contain various data for day to day management of supply and production and monitoring inside their unit. They have contended that there is no contradiction between the data contained in pen drive and those recorded in the statutory records. 23 .....

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s on a quantity of 1614 MTs of inputs. The findings by the Learned Commissioner is based on the analysis of data recovered from the pen drive. We find that while relying on and interpreting the data recovered from pen drive, the original authority has made many sweeping presumptions. For example, to arrive at the quantity of diverted/clandestinely removed inputs, the Revenue followed the standard of 100 MTS of balance per day of CG/EC ingots and the calculations were extrapolated on such standa .....

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the original authority. They have submitted that out of the total quantity of 7,851/- MTs after deducting the closing stock and certain sale of inputs, the net balance of 7,713 MTs. have been fully consumed in the manufacture of aluminum alloy ingots. The reconciliation statement provided by the appellant from the data contained in the pen drive is as follows: Quantity of CG ingots purchased 7851.640 MT Less closing stocking as on 31/5/2008 90.970 MT Less Trading sale 29.739 MT Balance quantity .....

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umption of CG/EC ingots in production of zinc master alloy shown in pen drive 255.032MT Total 7731.658MT 25. On examining the rival contentions, we find that the original authority has not commented on the availability of CG/EC ingots as part of in process material in various stages of manufacture inside the appellant s unit. The details of consumption of CG/EC ingots indicate that the said ingots are used for diluting, production of CU Master, Manganese Master and N-ing and Zinc Master alloy. 2 .....

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oration regarding sale and clearances of these inputs. We find the allegation of substitution of these inputs has also not been supported by any evidence. 27. The second issue is that after sorting the scrap, the appellant clandestinely removed 2366MT of scrap. The CENVAT Credit taken on this is denied. We find that the appellants have filed detailed flow chart of manufacturing process. The appellants have categorically stated that upon segregation of scrap the unusable items as well as segregat .....

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hese scrap. The department s contention is that to cover up diversion of scrap, local purchase of similar material has been made. Here again no evidence is put forth to support such contention. We find that summary allegation and findings in this regard cannot be sustained. 28. Next issue is on CENVAT Credit of ₹ 1,03,10,874/- which was denied on the ground of diversion of 698 MTs of aluminum scrap. This was based on certain loose sheets and some tick marks found in the private records. He .....

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I. The difference between private excel sheet and this statutory record has been explained by clearance or hold or certain sale, duly accounted for in the final statutory account. We find, either non-receipt or clandestine removal after receipt of any cenvatable raw material, has to be established by consistent corroborative evidence. We find no such evidence for this and the denial of credit is largely based on presumption and inference from private records. The details of private records were .....

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there is overlapping of allegations regarding unaccounted clearance of sorted out materials and scrap by the appellant. The appellant submitted that U denotes under process materials like dross and rejections which were reused in the manufacture of final product. We find that the basis for denial of such substantial amount of CENVAT Credit on interpretation entry U in the private record is totally unsustainable and beyond reason. There is no other corroboration of such allegation of unaccounted .....

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d in the pen drive. The quantity of sale of aluminum dross was found handwritten in the loose papers which the Revenue alleges to match with the sale invoice issued for ash and residue. Based on such inference for the period August, 2006 to May, 2008, the short levy was projected for entire period including period prior to August, 2006. We find that the confirmation of demand on this ground also is not supported by any corroborative evidence for transportation, money transaction, etc. Further, t .....

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68 SC and 2006 (203) ELT 3 SC. In a recent decision, the Hon ble High Court of Bombay in the case of Hindalco Industries Limited - 2015 (315) ELT 10 (Bombay) examined the issue of duty liability of aluminum dross and after relying on the various decisions including the above mentioned decisions of the Hon ble Supreme Court held the product as not liable to excise duty. 31. Considering the above legal position, we find even if it is considered that the appellant have cleared aluminum dross, the d .....

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tuation, it is necessary for the Revenue to support their interpretation by clear corroborative evidences and not by inferences and assumptions. (b) Even in interpreting the data in the pen drive and taking some support from the select statements of persons, we find that the data applicable to a particular period was extrapolated for the whole period of demand by presuming a standard projection. This apparently is not legally sustainable. (c) When the allegation of unaccounted clearances and sub .....

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absence of corroborative evidence without at least establishing a preponderance of probability the case for confirmation of demands can be made. (d) Large number of statements were recorded and also relied upon; but these statements were not put to test by way of cross-examination and analysis or supported by documentary evidence. The statements could be of help if they support evidences which exist and which requires re-affirmation. In the present case, the statements which deal with interpreta .....

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News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



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