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M/s. DIC India Ltd., Ms. Supriya Chatterjee, Shri N.R. Sharma, Shri C.S. Chalke Versus Commissioner of Central Excise, Mumbai

2017 (12) TMI 280 - CESTAT MUMBAI

Remission of duty - goods destroyed in fire - clandestine removal - Held that: - The impugned order does not bring out any independent corroborative evidence to shows that the goods found at M/s Noor Printing Press were cleared clandestinely by the Appellant or were same goods on which remission has been sought by the Appellant - the goods in dispute i.e alleged to have been found in drums at M/s Noor Printing press were only 2773.5 Kgs whereas the remission claim filed by the Appellant is in re .....

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gment in case of COMMISSIONER OF C. EX., CHENNAI-III Vs. JOY FOAM PVT. LTD. [2015 (7) TMI 386 - MADRAS HIGH COURT] as per which no reversal of credit is required - demand set aside. - Appeal allowed - decided in favor of appellant. - Appeal No. E/916 to 919/07 - Dated:- 17-11-2017 - Shri Ramesh Nair, Member ( Judicial ) Shri Anupam Surve, Advocate for Appellant Shri Ajay Kumar, Addl Commr. (A.R) for respondent ORDER The Brief facts of the case are that the appellants are engaged in manufactu .....

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the Surveyor the Appellant filed application for remission of duty in respect of damage of finished goods of 61496 Kgs. They also reversed the credit of raw material damaged in fire. The Surveyors supervised the sale of scrap generated due to fire as salvage and after obtaining quotations the scrap and salvaged goods were sold. The goods including M.S. Scrap, burnt steel structures, scrapped drums were sold to Shabbir Ahmed and Co. for ₹ 2,74,098/- and this amount was deducted from the in .....

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erefore the Appellant are liable to pay duty on the same. They have not reversed the cenvat credit on the inputs used in finished goods which were destroyed in fire. Accordingly a duty demand of ₹ 11,90,752/- was proposed against them on finished goods destroyed. It was also proposed to recover cenvat credit of ₹ 5,66,907/- on inputs consumed in finished goods so destroyed. Another Show Cause notice dt. 15.11.2006 alleging that the Appellants have not reversed credit on the inputs us .....

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umber of the drum, batch number and quantity it was found that the same was tallying with the goods on which remission of duty has been claimed by the Appellant. The said drums were purchased by M/s Noor Printing press from Shabbir Ahmed who in turn purchased it from Appellant Unit. On verification it was revealed that serial number of one of the drum tallied with one entry in the list of the finished goods. That as finished goods, intermediaries and semi finished goods were cleared as scrap wit .....

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l appearing for the Appellant submits that the remains of destroyed goods were cleared under the supervision of Surveyor by issuing invoice. In case of demand of duty on finished goods cleared as salvaged the demand has been confirmed only on the ground that serial number of one of the drum viz YL 19343 found at premises of M/s Noor Printing Press tallied with the one entry in list of finished goods destroyed and thus the damaged goods were clandestinely cleared. He submits that YL/SFL is only a .....

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remission of 61496. 09 Kgs of finished goods is sought to be disallowed on the sole ground of 2773.5 Kgs of Ink allegedly found at the premises of M/s Noor Printing Press out of which the Commissioner has pointed out only one drum of 20 kgs alleged to be cleared clandestinely. There is no evidence in the impugned order linking the printing ink found in Noor Printing press with the printing inks which are subject matter of remission claim. They did not have any relation with Noor Printing Press. .....

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ey have 25000 different products which bear this marking as prefix to their numeric code number and which amounts to more than 60% of the Appellant s turnover. They have never admitted that the drum found at Noor Printing press was same in respect of which remission claim was filed. That even in case of single drum of 20 Kgs bearing no. YL/ 19343 there were around 100 Drums bearing same serial number manufactured by Appellant out of which only 2 were subject matter of remission claim. That as pe .....

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e claim of 61496.09 Kgs. He also pointed out that on the one hand 96 drums found at Noor Printing press were referred and on the other hand the alleged list relied upon by the Commissioner refers to 50 drums only and there is vague reference to 24 and 16 partially filled drums and 6 empty drums and even as per the department there is no reference to any code number or serial number. Even in case of remaining 50 drums the product code in 49 drums do not match with those details in remission claim .....

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as cleared by the Appellant. The contention of the department that they have cleared printing ink for which they have applied for duty remission is wrong. The clearance of scrap i.e metal scrap viz. heavy scrap like beams and angles etc. as well as light scrap which consisted of drums and barrels was made on invoices under the supervision of insurance company and the amount of ₹ 2,74,908/- was received through Banking Channels. The same has not been disputed by the department. There is no .....

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COMMISSIONER OF C. EX., CHENNAI-III Vs. JOY FOAM PVT. LTD. 2015 (322) E.L.T. 209 (Mad.). 5. Shri. Ajay Kumar Ld. Additional Commissioner (AR) appearing for the revenue supports the impugned order and reiterates the findings of the adjudicating authority. 6. Heard both the sides and perused the relevant records and submissions. 7. In case of duty demand on finished goods I find that entire duty demand on damaged finished goods has been made on the ground that 100 drums of printing ink was found f .....

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een shown. Even in case of one 20 kgs drum found at M/s Noor Printing press I find that the Appellant are manufacturing more than 100 drums in a year with same marking and no evidence has been adduced from any source to show that the said drum has been cleared by the Appellant in the guise of damaged/ salvaged goods. Even it is not appearing from the statement of either owner of M/s Noor Printing Press or Shri Shabbir Ahmed that the drums were cleared by the Appellant concern. In such case I do .....

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which was only metal scrap and damaged drums and barrels. The serial number of damaged goods do not match with the drums alleged to have been brought by M/s Noor Printing Press. The Drums found at M/s Noor Printing Press were not seized by the revenue on the ground that the said goods were cleared clandestinely by the Appellant. Nothing incriminating has been found from the statement of owner of M/s Noor Printing Press and scrap dealer Shri Shabbir Ahmed. The impugned order does not bring out a .....

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