2020 (1) TMI 233
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....Vijayshree Alloys (Pune) Pvt.Ltd. are engaged in the manufacture of Aluminium Alloy Ingots. On the basis of intelligence and further investigations carried out by the department it is alleged that the respondent M/s. Vijayshree Alloys (Pune) Pvt. Ltd had manufactured and cleared 325.058 MT of finished Aluminium ingots during the period January 2005 to July 2006 from the imported Aluminium Scraps/Ingots, without payment of Central Excise duty of Rs. 59,20,831/- which was demanded from the Respondent M/s. Vijayshree Alloys (Pune) Pvt. Ltd. along with interest and penalty; notices were issued to other notices proposing penalty under Rules 26 of Central Excise Rules, 2002. On adjudication, the proceedings were dropped by the learned Commissione....
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.... that the goods have not reached Coimbatore but instead delivered at Pune. Therefore dropping the proceedings by the Commissioner is bad in law. 5. The learned Advocate for the respondent has submitted that M/s. Vijayshree Alloys (Pune) Pvt. Ltd. who manufactured during the relevant period the Aluminium Alloy ingots had cleared the said finished goods to OE manufacturers. It is his contention that there is not an iota of evidence to suggest that they have erroneously availed Cenvat credit on the aluminium scrap or cleared clandestinely the manufactured ingots out of such scraps. He has submitted that the manufacturer of Original Equipment derived no benefit from the said clandestine activities, nor the supplier M/s. Vijayshree Alloys (Pune....
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....ring the goods without payment of duty because they would then not be able to pass on cenvat credit to their customers. 22. I am in agreement with the submissions of M/s Vijayashree Alloys (Pune) Pvt. Ltd. The evidence adduced in the show cause notice at best appears to show that aluminum scrap was clandestinely delivered to M/s Vijayashree Alloys (Pune) Pvt. Ltd. However this cannot be the basis for the next step i.e. directly inferring that M/s Vijayashree Alloys (Pune) Pvt. Ltd. utilized this scrap to manufacture aluminium ingots and clandestinely removed them without payment of central excise duty. This is a presumption or assumption. It is settled law that the serious charge of clandestine removal has to be supported with sufficient ....