TMI Blog2021 (4) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... LTD., VERSUS THE COMMISSIONER OF CENTRAL EXCISE, CHENNAI-II COMMISSIONERATE, CHENNAI, CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTH ZONAL BENCH, [ 2021 (3) TMI 276 - MADRAS HIGH COURT] had also held that standard input and output norms cannot be the sole basis for giving a cause of action for issuing the show cause notice for determination of the wastage, when there is no allegation of diversion made against the assessee. In the case on hand, there is no allegation against the petitioner that they had indulged in clandestine removal. The matter is remitted to the file of the first respondent - petition allowed by way of remand. - W.P.(MD)No.3378 of 2020 And W.M.P.(MD)No.2841 of 2020 - - - Dated:- 19-3-2021 - Honourab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the writ petition is appealable, the present writ petition ought to be dismissed as not maintainable. 4.The learned counsel for the petitioner submitted that the petitioner procures coconut shells and subjects the same through a heating process. The output is known as Granulated Activated Carbon and the same is sold. His pointed contention is that the levy of excise duty can only be on the product actually manufactured which is removed from the factory premises. In this regard, the learned counsel drew my attention to Section 3 of Central Excise Act, 1944 and Rule 8 of the Central Excise Rules, 2007. In the case on hand, the authority has not proposed to levy duty based on the actual manufacture or removal. Instead, the respondents h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de against the assessee. 8.In the case on hand, there is no allegation against the petitioner that they had indulged in clandestine removal. 9.Therefore, I am of the view that the order impugned in the writ petition which rests on formula given by the Coconut Development Board, cannot be sustained. In this view of the matter, the order impugned in the writ petition is set aside. The matter is remitted to the file of the first respondent. The first respondent shall verify the records and revisit the issue and levy duty based on actual production / removal of the goods in question. 10.This Writ Petition is allowed on these terms. No costs. Consequently, connected miscellaneous petition is closed. - - TaxTMI - TMITax - Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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