TMI Blog2018 (8) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... oods stand cleared by Unit No.1 without payment of duty - the findings of clandestine removal against the said Unit are unsustainable. The shortages found in Unit No.1 were almost equal to the goods seized in Unit No.2, 3 & 4. The Revenue has confiscated the excess found goods in Unit No.2, 3 & 4 even though the said units were not registered with the Department and there was no requirement for their registration inasmuch as they were doing the job work for Unit No.1 and was not manufacturing any final product - No justification for confiscation of the said excess found goods in their premises, which are nothing but the shortages detected in the Unit No. 1. The confiscation of the same and imposition of penalties on the said units are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the same stand cleared from Unit No.1 without payment of duty. 4. In view of the above background proceedings were initiated against Unit No.1 vide show cause notice dated 03/06/2010 alleging clandestine removal and proposing to confirm duty on the same along with imposition of penalty. Similarly proceedings were initiated against Unit No.2, 3 4 by way of issuance of three show cause notices all dated 29/10/2008 proposing confiscation of the excess found goods along with imposition of penalties. 5. The said show cause notices culminated into orders passed by the Original Adjudicating Authority vide which demand of duty of ₹ 6,81,831/- was confirmed against Unit No.1 on the allegations and findings of clandestine removal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing, Dyeing, Sizing, Cutting, Stitching (Panel Making), Stitching (Garmenting), Accessorizing, Quality Control Packing etc. As per the appellant the huge export turnover requires sizeable amount of manufacturing activities, which could not be undertaken in their premises and as such they have taken other premises for carrying out a part of the manufacturing process. These processes were being carried out by Unit No. 2, 3 4 on job work basis from the rented premises and after carrying out the said job the goods were being returned to their Unit No.1 and after carrying out further processes, the same were being cleared on payment of duty. As such they have taken a plea that there was no shortages of goods in Unit No.1 inasmuch as they we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 (225) E.L.T. 194 (P H). It stands held in the said decisions that the shortages of the final product detected by the officers during the course of their visit in the assessee s factory are not enough to hold charge of clandestine removal in the absence of any investigations conducted by the Revenue so as to identify the buyer or supplier of the raw material. In the present case, we note that apart from the shortages, Revenue has not referred to any other evidence on record to indicate or to establish that the short found goods stand cleared by Unit No.1 without payment of duty. As such, we hold that the findings of clandestine removal against the said Unit are unsustainable. 9. In any case and in any view of the matter the shorta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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