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TMI Blog2019 (8) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... oods as well as on behalf of client (conversion job). The appellant's main product, Linear Alkyl Benzyne Sulphuric Acid 90% (LABSA 90%), commercially known as Acid Slurry, is a major raw material for all laundry detergents. The same is manufactured from LABSA and Sulphuric Acid resulting in the production of LABSA 90% and Spent Acid. On 28th July, 2011, the Superintendent (Audit) of Central Excise, visited the appellant's factory and issued a spot memo, which alleged that when comparing the production figures in respect of conversion jobs undertaken by the appellant with the appellant's own production, there is a considerable difference in the production of acid slurry. Show-cause-notice dated 06.05.2013 was issued for suppression of quant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the conversion job undertaken for M/s A.R.Stanchem Pvt. Ltd. This difference in amount of sulphuric acid is attributable to the fact that miniscule difference in the quality of sulphuric acid may cause requirement of more or less quantities of sulphuric acid in the manufacture of LABSA and also the need to use more or less water in the manufacturing g process to achieve the desired results. When the quantities of sulphuric acid used varies, the resultant amount of Spent Sulphuric Acid also varies but not in the same ratio. In the premises even in cases where more sulphuric acid has been used, the amount of LABSA 90% has remained constant and more quantity of Spent Acid has been generated. Thus, the Adjudicating Authority/Respondent her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004 were converted into LABSA and by product Spent Sulphuric Acid and were returned to the sid company as per the purchase orders placed on the appellant. M/s A.R.Stanchem Pvt. Ltd. received such goods in their factory and entered them in their DSA and paid duty at the time of clearance of such goods from their factory. An artificial dispute has been raised in the show-cause notice stating that the percentage of Spent Sulphuric Acid was different in respect of conversion job and those of own manufacture resulting in difference in percentage of finished products, namely, LABSA 90& and spent sulphuric acid respectively. Subsequently, the respondent herein passed order-in-original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t supported by any materials and/or evidence in the records of the case or without any basis whatsoever. 8. We also find that the demand stands confirmed against the appellant on the findings of clandestine removal of main finished goods (LABSA), which in turn, is based upon input output ratio. This is the case of the Department that the appellants have deliberately shows more quantity of spent sulphuric acid and more clearance of spent acid. Further the cases of clandestine removal cannot be built on the input-output ratio as has been held by the Tribunal in a number of decisions. Reliance is placed upon the Tribunal's decision in the case of M/s Hindustan Coca Cola Beverages Pvt. Ltd. : 2006 (205) ELT 700 (Tri.-Mumbai). 9. It is our con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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