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TMI Blog2016 (9) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2006 Adjudicating Authority confiscated 20.44 M.Ts of Zinc Ingots seized on 2.08.2000 and allowed redemption. Duty demand of Rs. 53,70,918/- alongwith interest, has also been confirmed against the appellant in addition to imposition of equivalent penalty as per the provisions of Section 11 AC of the Central Excise Act, 1944. 2. Shri B.N.Chattopadhyay (Consultant) and Shri Arijit Chakraborty (Advocate) appeared on behalf of the appellant and made following submissions/arguments to defend their client:- (i) That appellant is a registered small scale unit and carries out activities of grinding/sieving of Zinc Ash so that it can be used for making Zinc Sulphate for the manufacture of fertilizers. That appellant has got two Bhattis run on co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icate whether any summons were issued to the suppliers whereas appellant furnished affidavits from these vendors/suppliers alongwith the Voter ID cards or Driving licenses or electric bills etc. of their clients. (iv) That department has relied upon the statement of one person Shri Prabir Hazra, who was not appellant s client but stated on the basis of two challans (Annexure 4(1) and 4(2) of the Show Cause Notice) to allege that Shri Prabir Hazra has sent Zinc Dross to the appellant for the purpose of making Zinc Ingots. That statement of Shri Prabir Hazra is ex-facie incorrect as from Zinc Dross directly Zinc Ingots can never be made. That cross-examination of Shri Prabir Hazra was allowed by the Adjudicating Authority but no efforts were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority and also imposition of Rs. 2.00 lakh redemption fine was bad in law. 3. Shri K.Choudhari, Suptd.(AR) appearing on behalf of the Revenue made the following arguments:- (i) That appellant had two bhattis heated by coal which were capable of being making Zinc Ingots indicated by the seizure of 20.440 MT of Ingots from their factory. (ii) That none of the customers/vendors whom appellant has claimed to be its clients responded to summons issued. (iii) That challans recovered from M/s. Super Galvanising Works suggest that appellant was manufacturing Zinc Ingots for the earlier period also when read with the statement of Shri Prabir Hazra proprietor of M/s. Super Galvanizing Works. That since M/s. Sylvan Chemicals had no facility t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her processes of casting and sieving are scored off. The statement dt. 17.08.2000 of Shri Deb Nath Bhattacharya (Accountant ) of the appellant confirmed the rate of processing to be Rs. 1.50 per Kg. of material received and that ingot manufacturing started in the last few days. Shri Prabir Hazra, Proprietor of M/s. Super Galvanizing Works in his statement dt. 31.08.2000 stated that he is getting Zinc Ingots manufactured out of Zinc Dross supplied from M/s. Sylvan Chemicals and also produced two challans dt. 22.07.2000 and 05.08.2000. However it is observed from copies of these challans that none of these were signed by Sri Prabir Hazra but have been signed by one Shri P.Samanta. Cross-examination of Shri Prabir Hazra was asked by appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ingot manufacturing was started by the appellant in the last few days of seizure of Zinc Ingots. There is no other evidence indicating manufacture of Zinc Ingots from 1996-1997 to 1999-2000. Documentary evidences gathered by the investigating agency do raise suspicion but a suspicion howsoever grave cannot take the place of proof. Accordingly department s argument that all processing done by the appellant, for the relevant period, was only manufacturing of ingots, is not acceptable and is rejected. Further a case of clandestine removal cannot be based only on statements unless corroborated by other positive evidences. 5. Further even if it is assumed that appellant was manufacturing Zinc Ingots all through the period from 1996-1997 to 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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