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2015 (10) TMI 2518 - CESTAT ALLAHABAD

2015 (10) TMI 2518 - CESTAT ALLAHABAD - 2016 (344) E.L.T. 261 (Tri. - All.) - Variation of actual stock of sugar and baggase with the records Held that: variation tolerable as there is bound to be some error in the stock taking as the element of estimation is present appeal allowed for this issue - Baggase and press mud not excisable - extended period of limitation not invokable on scrap sold proper invoices issued,all records maintained on sale of scrap normal period of duty impose .....

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mp; S.Tax, Noida, by which, OIO was upheld. 2. The brief facts are that there was an inspection in the factory premises on 22/02/12 whereby the stock of sugar, molasses was taken and some discrepancy was found to the effect that against the stock of 92, 736.10 quintals of Molasses, an excess of 1272.2 quintal was found. Against the stock of sugar on the date 1,34,190 quintals, shortage of 65 quintals was found. It was found that the appellant have cleared Bagasse and Press Mud exempted products .....

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S.Scraps valued at ₹ 59,96,242/- during the year 2010 11 and ₹ 97,57,066/- during the year 2011-12 on which no Central Excise duty was paid as required under Rule 3(5A) of the Cenvat Credit Rules. The person-in-charge, Mr. Gopal Sharma, DGM, was present at the time of inspection, explained that they had purchased the unit on as is where is basis on 20/10/2010 from Uttar Pradesh Sugar Corporation Ltd,. It appeared to revenue that the appellant is required to pay Central Excise duty un .....

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at ₹ 3,94,320/- was seized /confiscated with an option to redeem by paying fine of ₹ 1.00 lakh. Further, 65 quintal of sugar was found short and duty thereon ₹ 6,018/- was confirmed. Further, duty on bagasse and press mud cleared was determined and the amount paid during investigation, being equal was appropriated. Further duty amount of ₹ 16,33,199/- was confirmed on the scrap and the amount paid during investigation ₹ 13,03,116/- was appropriated. Further equal a .....

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ken at about 1:30 PM on the date of inspection when the production was in process. The ld. Counsel further draws my attention that the stock of molasses is also monitored by the State Excise Authority. He has got my attention to form MF-5 (stock register) for molasses under the State Excise Act, wherein there are periodical inspection made by the State Authority. He further points out from the copy of the daily stock account, RG1 register dated 16.04.12 wherein the opening balance have been corr .....

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he same is fit to be set aside. So far as the issue of stock of sugar is concerned, he urges that the variation is only 65 quintals which is less than half percent of the total stock of sugar on the date. Further the production was going on and the Sugar Stacks were disturbed and in the process of being completed and as such the minor variation is a normal feature and the authority below have erred in drawing adverse conclusion. Further, he urges that that is no discrepancy in the stock of sugar .....

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ufacture of sugar and molasses and as such no duty is required to be paid and/or reversed on the clearance of the same. Against the ruling of Honourable Allahabad High Court, in the aforesaid case, Revenue had filed Appeal before the Honourable Supreme Court wherein the ruling of the Honourable High Court have been upheld by holding that Rule 6 of CCRis not attracted for clearance of waste in the case of Union of India Vs. DSCL Sugar Ltd. : 2015 (322) ELT 769 (S.C.). So far as the question of sc .....

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and the extended period is not invokable in respect of the same, moreover it is an admitted fact that scrap transaction was reflected in the balance sheets prepared by the appellant, which is admittedly the basis of information of the revenue. He further urges that no duty was payable on the waste and scrap which practically came out of the demolishing of the hutments existing on the factory premises and as such duty confirmed on the scrap of tin is wholly without any basis and fit to be set asi .....

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