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2016 (7) TMI 291 - CESTAT CHANDIGARH

2016 (7) TMI 291 - CESTAT CHANDIGARH - 2016 (338) E.L.T. 608 (Tri. - Chan.) - Clandestine removal of goods - manufacture of zine ingots - It is the allegation that the entries made in the log sheet pertain to the manufacturing took place by the appellant and the same has not been entered in the RG-1 register. The appellant has explained that after manufacturing the goods, the goods are being tested and test reports are placed on records which show that after obtaining the test reports, the appel .....

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inable. - Demand and penalty set aside - Decided in favor of assessee. - E/1003-1004/2006 - Final Order No. 336-337/2016-CHD - Dated:- 29-4-2016 - Mr. Ashok Jindal, Member (Judicial) Present for the Appellant : Shri Naveen Bindal, Advocate Present for the Respondent : Shri G.R. Singh, Advocate ORDER The appellants have filed these appeals against a common order passed by the Commissioner of Central Excise, Rohtak. 2. The facts of the case are that the appellants are engaged in the manufacture of .....

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ty; and (c) Appellants wrongly availed Modvat Credit of ₹ 7,68,946.00. 3. A show cause notice was issued to the appellant and the matter was adjudicated and the demand of duty confirmed as proposed in the show cause notice. The said matter was taken up by this Tribunal and this Tribunal vide Final Order No. A/84-85/03-NB dated 28.1.2003 remanded the matter back to the adjudicating authority for demand confirmed against the appellant were ₹ 3,92,845/- and ₹ 14,75,127/- on the ba .....

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rding an opportunity of hearing to the appellant. Rest of the order was set aside. 4. In remand proceedings, the issue No. (a) and (b) are before me. 5. Learned Counsel for the appellant submitted that the demand has been confirmed on the basis of the entries in log book register recorded during the visit and on the basis of outward gate register found in the possession of gate keeper. He further submitted that it is alleged that log sheet have been prepared date wise and heatwise therefore, it .....

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esel Bhatti, Purja Bhatti and Gamti Bhatti. No testing was done in case of Purja Bhatti and Gamti Bhatti. It is his submission that while in the adjudication, the production process was considered on presumption that the goods entered in log register was final product. Therefore, the demand was confirmed. There is no corroborative evidence for clandestine removal of goods as no excess raw material or finished goods were found at the time of search. No incriminating document was found in the prem .....

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sheet have been prepared date wise and heatwise therefore, it is alleged that the goods have been cleared clandestinely without recording in the RG-1 register. In fact these goods have been are used for die casting and further manufacturing the goods, the goods are tested as per IS specification of zinc based alloy casting after obtaining the test reports such goods were entered in the RG-1 register and thereafter these goods were sold on payment of duty by the appellant. It is further submitted .....

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ime of search. No incriminating document was found in the premises. Source of excess purchase of raw material, transportation or any other evidence was not produced by the Revenue for alleging clandestine removal of the goods. Therefore, merely on the basis of log register the demand is not sustainable in the absence of fact that the goods entered in RG-1 register over and above the goods in log register. In fact it is not alleged by the Revenue that the entries made in the register are over and .....

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correlate the invoices and heat numbers. Director of the appellant has given categorical statement and the same book let was recovered during the search. Therefore, the discrepancies pointed out have been answered by the appellant and the same are to be treated as part of submission. To support this contention, he relied upon the decision in the case of Deepak Tandon vs. CCE-2000 (126) ELT 1079 and Gian Castings Ltd. vs. CCE-2007 (220) ELT 139. 6. For demand based on outward register, it is the .....

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ed in the outward register and the statement recorded of one principal manufacturer on whose behalf the job work was done by the appellant. The challan recovered during the course of search which evidenced that the appellant was engaged in the activity of job work. The appellant issued separate invoices/debit notes and income generated on account of job work was duly entered in books of accounts and balance sheet of the appellant company. Therefore, the allegation of clandestine removal is not s .....

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nd has been confirmed against the appellant on two grounds: (a) on the basis of log register entries which were not found place in the register and (b) on the basis of entries made in the outward register, no invoice has been issued by the appellant. 10. The appellant have produced log sheets and explained the invoices for clearance of the goods. It is the allegation that the entries made in the log sheet pertain to the manufacturing took place by the appellant and the same has not been entered .....

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