TMI Blog2016 (12) TMI 1615X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of remand. - E/70440/13 - FO/A/76490/2016 - Dated:- 8-12-2016 - Shri P.K. Choudhary, Member(Judicial) Shri A.K. Das, Advocate for the Appellant Shri A.K. Biswas, Supdt.(AR) for the Revenue ORDER Per: Shri P.K. Choudhary M/s. Synotex Industries, the appellant herein is a manufacture of Zinc Oxide, Zinc Residue etc. falling under Item No.28170010 and 79020090 respectively of the First Schedule to the Central Excise Tariff Act, 1985. The period of dispute is from July, 2009 to March, 2010. For the manufacture of Zinc Oxide the appellant used both Zinc Ingot and Dross as raw material. Show Cause Notice was issued alleging clandestine clearance applying the Standard Input-Output Norms notified by DGFT in Handb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant argued on the following points :- Preliminary Objection on the sustainability of the SCN and/or the impugned O/A. (1) The charge of clandestine removal has been alleged with reference to the norm of Input-Output ratio (in the manufacture of Zinc Oxide) given in the SION published by DGFT and without any supporting/corroborative evidence of unaccounted for production and/or clandestine removal . The very issue was the subject-matter of two earlier SCNs, which culminated in O/A No.17-18/Kol-I/2011 dated 17.02.2011 (copy enclosed at P.P 57 to 67 of the Appeal Petition) passed by the CCE(A), setting aside the demand and holding that demand on this ground cannot be raised/sustained. The said O/A was accepted by the Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual production in real time situation depends upon the production efficiency of the machine/appliances, man-power skill, quality/purity of the major input i.e. Zinc Dross in the present case etc. It will rarely match the SION norm, which is an average of all India production ratio of the item. (7) It is well established law by now that the allegation of clandestine removal cannot be sustained on the basis of any theoretical calculation, unless some concrete/corroborative evidence of clandestine removal has been placed/brought to light , as has been held in the cases of Oudh Sugar Mill v. CCE [1978 (2) ELT J172(SC)], Hindustan Coca Cola Beverages Pvt. Ltd. Vs. CCE [2006 (203) ELT 700 (Tri.-Mum.)], Lumbini Beverages Pvt.Ltd. Vs. CCE [ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
