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TMI Blog2017 (3) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Commissioner (Appeals), Central Excise, Ahmedabad II. 2. Briefly stated the facts of the case are that the Central Excise Officers had intercepted a vehicle loaded with 500 kgs. of Saviton WS manufactured and cleared from the factory premises of M/s Kemit Chemicals Pvt. Ltd.. Since no Central Excise invoice was issued in respect of said goods, the goods and the vehicle were placed under seizure . Continuing with investigation, the officers conducted search in the factory and the office premises of the appellant, M/s Kemit Chemicals Pvt. Limited on 01.01.2000 and retrieved/seized various registers and documents. Also, on physical verification of the stock of raw materials and final products in the factory, the officers noticed shortage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Ld. Advocate for the appellants/assessees submits that on completion of investigation, based on statements of various persons and the entries recorded in the registers at serial Nos.2, 13 and 20 of annexure to the Panchnama, it has been alleged that the assessee had manufactured and cleared 5,06,762 kgs. of finished product without payment of duty. Similarly, registers at serial No.3, 14 and 21 related to procurement of raw materials without discharge of duty. It is his contention that out of the total removal of 5,06,762 kgs, approximately 2,53,000 kgs. relate to clearances made to two parties namely, M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s Nova Dye-Stuff. Two statements of the relevant persons of the said two buyers were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure. The statements of concerned persons of M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s Nova Dye-Stuff shown as purchasers had been recorded is a fact and admitted during the course of cross-examination by the officers, but copies of the said statements were not enclosed with the show cause notice on the ground that they were not relied upon documents. It is his contention that evidence collected during the course of investigation, whether relied upon or otherwise ought to have been supplied to them so as to rebut the allegations leveled in the notice. 5. Further, he has submitted that they have enclosed Annexures along with their reply to the show cause notice explaining the error in computation of the demand. In the Annexure I t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey had manufactured and cleared 5,06,762 kgs. of dyes intermediates clandestinely without payment of total central excise duty of Rs. 28,68,857/-. The said allegation is based on the records retrieved from the premises of the appellant M/s Kemit Chemicals Pvt. Limited during the course of search conducted on 01.01.2000. Analyzing the documents and the statements recorded, the adjudicating authority has confirmed the demand against the appellant- assessee and imposed penalties. The main grievance of the appellants is that approximately 50% of the demand relates to clearance of goods mentioned in Annexure II to the show cause notice to the parties namely , M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s Nova Dye-Stuff. The statements of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is prudent to remand the matter to the adjudicating authority to decide the issue afresh taking into consideration the evidence on record including the statements of all the buyers i.e. M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s Nova Dye-Stuff and also to record the discrepancies in the computation of demand pointed out by the appellant through various Annexures submitted with their reply to the show cause notice. All the issues are kept open. Needless to mention a reasonable opportunity of hearing be allowed to the Appellants. Since the demand has been set aside and the matter is now remanded back to the adjudicating authority for re-adjudication, the Revenue s appeal challenging reduction of penalty has become infructuous a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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