TMI Blog2016 (11) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Indra Metal Works Vs. CCE Pune 1999 [1998 (5) TMI 193 - CEGAT, MUMBAI] Confiscation of raw material - Held that: - there is no provision for confiscation of the unaccounted raw material. Demand - Held that: - the Revenue has not been able to produce any evidence on record to show that the said goods were actually manufactured in the appellant's factory and were cleared there from, without payment of duty of excise. The fact of non availability of any evidence read with the fact of the appellant's FIR and the resultant disclosure of the fact of presence of spurious manufacturers when taken into consideration will lead to the unsubstantiated allegation of the Revenue as regards clandestine clearances. As such by extending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully wrapped 10 packets at the Railway Station, New Delhi which were found to be lying unclaimed. On enquiries, nobody came forward to claim the said goods. The same were opened and found to be containing Chewing Tobacco under the brand name of Shiv Data and with the address of the appellant factory. By entertaining a view that the said goods were cleared by the appellant from their factory without payment of duty, the same, totally valued at ₹ 2,79,790/- were also seized 1 , under the panchnama dated 29.11.2012. 4. On the above basis, proceedings were initiated against the appellant by way of issuance of show cause notice proposing to confiscate the excess found goods in their factory. The notice also proposed to confirm demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame were not entered in the records. The appellant have strongly contested the said finding of the lower authorities on the ground that all the raw materials were recorded in the statutory records and the finished goods had not attained finality and as such were not required to be entered in RG-1 records. The appellants have contested that the entire search was conducted on eye estimation basis, in as much as there is no evidence on record that the goods were properly verified. The appellants were availing Cenvat Credit on the inputs and as such there were no occasion for them to not enter the final product in their records. They have also submitted that there is no provision under the Central Excise law to confiscate raw materials or packa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant that there is no provision for confiscation of the unaccounted raw material. Otherwise also, I find that it is the appellant's contention that the raw materials were recorded in the statutory records and they were availing the Cenvat Credit on the duty paid on the same. As such confiscation of the raw material or the packaging raw material is also unwarranted. The same is set aside. 9. As regards the demand of duty to the extent of ₹ 98,633/- in respect of the goods seized from the New Delhi Railway Station and the confiscation of the same on the ground that the said goods were cleared from the appellant's factory without payment of duty in as much as the same bears the appellant brand name and the address of their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cenario, appellant's contention that the goods seized from the railway station might have been manufactured by the spurious manufacturers needs credence. Apart from the above, I also note that the Revenue has not been able to produce any evidence on record to show that the said goods were actually manufactured in the appellant's factory and were cleared there from, without payment of duty of excise. The fact of non availability of any evidence read with the fact of the appellant's FIR and the resultant disclosure of the fact of presence of spurious manufacturers when taken into consideration will lead to the unsubstantiated allegation of the Revenue as regards clandestine clearances. As such by extending the benefit of doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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