TMI Blog2018 (10) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... was made to ascertain the fact how much bottles were sent for production and how much bottles of finished goods were received - no effort was made to ascertain the fact that how much crown corks were wasted during the manufacture of finished goods and how much bottles were issued for production and how much bottles of finished goods were received. It is a fact on record that aerated water cannot be sold without packed in bottle on which the crown corks is affixed, therefore, the investigation conducted by the Revenue is faulty and Revenue has alleged allegation of clandestine removal against the appellant on the basis of assumption and presumption - The whole case is made out against the appellant only on the basis of assumption and pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The matter was adjudicated, the demand of duty was confirmed alleging clandestine removal of goods on the basis of uses of essence/concentrate to be used for manufacture of aerated water and non-accountal of Crown Corks. Therefore, the appellant is in appeal. 3. Ld. Counsel appearing on behalf of the appellant submits that the sole base for the demand raised against the appellant is that the appellant has shown excess quantity of using of crown corks whereas less quantity of finished goods/aerated water found entered in RG-I register. The said demand is without any basis only on the basis of assumptions and presumptions. It is submitted that it has been presumed that there may be some shortages during the manufacture of goods, but, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by the appellant for production are more than as per the formula of concentrate production of essence/concentrate, but the essential input i.e. bottles in which the aerated water is to be sold, no effort was made to ascertain the fact how much bottles were sent for production and how much bottles of finished goods were received. The whole case is made out against the appellant only on the basis of assumption and presumption, therefore, the demand is not sustainable. A similar view was taken by this Tribunal in the case of Varanasi Bottling Company (P) Limited (supra) wherein this Tribunal again examined the issue of issuing of essence/concentrate and this Tribunal observed as under:- 5. We find that this position has been analysed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mula by itself, without consideration of any of the other factors would not amount of determination of a norm under Rule 173E. It has, therefore, to be held that there is insufficient basis for the demands of duty. In view of this, we do not propose to answer the question as to whether the demands were barred by limitation. The demand of duty and penalty is set-aside. Further, in the case of Ludhiana Bottling Company (supra), this Tribunal again examined the issue of issuing of non-accountal of crown corks and this Tribunal observed as under:- 2. We have heard Shri Jangir Singh, Ld. DR and Shri V. Kohli Ld. Counsel for the respondent. Although the dismissal of the appeal is on technical ground taken by the Commissioner (Appeals), yet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al held that on these consideration inputs which are in nature of discrete articles like crown corks when damaged or rendered unfit for use during the manufacture of the final product will constitute waste which no doubt, may comprise of a part of the total quantity of the particular duty paid input received by the manufacturer. Following this decision, which is applicable to the facts of these cases, the demand on this quantity of crown corks is also not sustainable. Therefore even on merits there is no need to interfere with the order of the lower authority. In this view of the matter, we see no reason to interfere with the impugned order and appeals are therefore rejected. We find that in this case also, no effort was made to ascertai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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