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M/s Meghmani Organics Ltd, Shri Rameshbhai Meghjibhai Patel, Shri Manoj Mishra Versus Commissioner of Central Excise-Surat

2017 (2) TMI 670 - CESTAT AHMEDABAD

Benefit of N/N. 8/97-CE - appellants have made substantial purchases of raw materials from the domestic market in addition to imports - whether exemption can be denied merely because the appellants had not made proper records that is procedural lapse? - Held that: - When there was no evidence produced, the impugned order holds that the appellant was not entitled to the exemption - the appellants deserve to be given sufficient opportunity for submission of evidences and documents, if any, to supp .....

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or the Respondent : Shri J Nagori, Authorised Representative ORDER Per Shri Ashok K Arya 1.0 The Appellants, M/s Meghmani Organics Ltd., Shri Rameshbhai Meghjibhai Patel and Shri Manoj Mishra are in appeal against OIO-10/KRB/MP/2006 dt 31/03/2006 passed by the Commissioner of Central Excise (Adjn) -SURAT-II. 1.1 The OIO dated 31.3.2006 interalia confirms the demand of duty of Central Excise amounting to ₹ 38,46,449/- (Rupees thirty-eight lac forty-six thousand four hundred forty-nine) and .....

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o the appellants. 2.0 The appellants have been represented by the Ld Advocate, Shri P M Dave and the Revenue has been represented by the Ld AR, Dr J Nagori. 3.0 Based on the appeal memoranda and the written submissions, the Ld Advocate for the appellants, interalia submits as under: i) The CCE, Surat-II has passed the impugned order recording at internal page 33 of the order that the appellants have made substantial purchases of raw materials from the domestic market in addition to imports and h .....

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ification, and that similar observations in respect of Cuprous Chloride and other inputs for Unit-II could be made on perusal of summary statements annexed to the order. iii) A favourable finding specifically recorded in an adjudication order not challenged by the Revenue could not be ignored because it becomes final and has to be implemented even if wrong unless set aside by a higher forum. Reliance is placed on the following case laws: a) Fertilizers and Chemicals V/s. Collector, Cochin 1987 ( .....

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antities of final products cleared in DTA at a particular point of time. V) The Commissioner has referred to only one example of June, 2004 concerning Unit-I for which the demand of duty has been ₹ 38,46,449/- but no further examples of any DTA clearance from Unit-I nor a single example for clearance made from Unit-II (for which the demand of duty has been ₹ 1,90,42,672/-) is given for denying the exemption. The order denying the substantive right of exemption on such totally fallaci .....

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lls (P) Ltd CESTAT Order No 942-943/WZB/09 dt 16.4.2009/29.05.2009 vii) The extended period can not be invoked and the reliance is placed on the decision of Padmini Products 1989(43)ELT.195 (SC) 4.0 The Ld AR for the Revenue based on the written submissions interalia submits as under: i) The Commissioner has discussed the general proportion and in the subsequent paras, after examining the records and material, he has arrived to the conclusion that the appellant are not eligible for the benefit o .....

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ichand Shri Gopal - 2010 (260)ELT3 (SC) * Mihir Textiles Ltd. V/s Collector of Customs 1997 (92) ELT 9 SC. iv) Wordings of the notifications 8/97 are absolutely Clear. It extends the benefit to the EOU only when the goods cleared in DTA has been WHOLLY manufactured by the indigenous raw materials. Even a small portion of use of imported raw material will debar the party from the benefit of the notification. * Century Denim v/s Commissioner of Central Excise - 2009 (241) ELT 135 (Tri-Del) * STL E .....

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o prove that they have fulfilled the conditions of the notifications. The appellant has failed to prove so. a) Motiram Tolaram v/s Union of India 1999 (112) ELT 749 SC b) Natsan Laminated v/s Commissioner of Central Excise 2005 (181) ELT 382 SC c) M/s Meridian Industries Ltd. v/s Commissioner of Central Excise (2015-TIOL-262-SC-CX). vii) In case of doubt benefit goes to state; it is settled law that in case of any doubt about the interpretation the notification, the benefit should go to the stat .....

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n and findings portion mentions that - On perusal of Summary Statements, I observe that they have made substantial purchase of raw materials from the domestic market in addition to import from overseas and also I feel that merely because they have not made proper records exemption should no be denied. I m of the opinion that the substantive right should not be denied for want of procedural non-compliance. But records and evidence should help me to come to fair conclusion. But the said premise ha .....

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s raw-material (Cuprous Chloride) alongwith the production and local (DTA) and export clearance indicate that the said data is in their favour to the fact that they are in a position to prove fulfilment of the conditions of the Notification. In this regard, the Ld Advocate also states that at the instance of the Tribunal, Chartered Accountant s certificate has been produced, which substantiates the appellants stand that they fulfilled the conditions of the Notification No 8/97-CE. 7.1 On the oth .....

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s that the appellant assessee did not produce the relevant records to establish clear linkage with the indigenous raw-material and the goods cleared in DTA under Notification No 8/89-CE dt 1.3.1997; therefore, the impugned order concludes that the condition of the Notification that the goods were manufactured WHOLLY out of indigenous raw-material is not fulfilled. 8.1 The impugned order also concludes that in case of the goods manufactured viz., Alpha Blue and Beta Blue no records were produced .....

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