TMI Blog2023 (6) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... ange Superintendent from time to time informing the invoice no, vendor s name, quantity of material purchased and received in transporter s premises viz. Kamal Roadways duly acknowledged by the Inspector of the Range Office, being not contradicted by the Revenue about its genuineness, weighs in favour of the appellant. No investigation was carried out after intimation letters were received in the Range office even though these were addressed from time to time, much before the audit objection, no verification was carried out. Therefore, it is difficult to accept the allegation of the department that the quantity of goods as shown in the purchase invoices were brought into the factory, processed, converted into finished goods and removed clandestinely without payment of duty. The impugned order is set aside and the appeal is allowed. - Excise Appeal No. 20375 of 2020 - Final Order No. 20574 / 2023 - Dated:- 16-6-2023 - HON'BLE Dr. D. M. MISRA , MEMBER ( JUDICIAL ) Shri Raghavendra B. Hanjeer , Advocate for the appellant Shri H. Jayathirtha , Superintendent ( AR ) for the respondent ORDER Per : DR. D. M. MISRA This appeal has been filed against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant in the present case procured copper wire from two suppliers and sold the same as it is without bringing the same to the factory and carrying out any manufacturing process on the same. From time to time, purchase of said goods with all details had been intimated to the Department and necessary application was also submitted to the Department seeking permission for trading. The application for Registration was neither rejected nor accepted by the Department. Thus, in the absence of any response to their application, it is deemed to have been accepted. 3.2. Further the learned advocate has submitted that there should be sufficient evidence to hold that there was clandestine manufacture and clearances of goods, viz. procurement of inputs, sufficient manpower, machinery to undertake manufacturing activity, power consumption, use of transportation for procurement of raw material and final products etc.; no such evidence has been adduced by the Department nor in-depth investigation has been carried out to establish the said allegation. 3.3 The statements of the Director of the appellant and one transporter reveals that the goods were procured from M/s. Mech Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out on the same. In support, he placed reliance on the following judgements: - i. Continental Cement Company Vs. UOI [2014(309) ELT 411] ii. Punjab Fibres Ltd. Vs. CCE, Delhi [2002(141) ELT 819 (Tri. Del.)] iii. Aum Aluminum Pvt. Ltd. Vs. CCE, Vadodara [2014(311) ELT 354 (Tri. Ahmd.)] iv. CC,CE ST, Ghaziabad Vs. Auto Gollon Industries P. Ltd. [2018 (360) ELT 29 (All.)] 3.7. Further, he has submitted that in the case the demand is held to be sustainable, the duty payable should be considered as cum-duty price as the appellant has neither charged nor collected duty on the said invoices. He has further submitted that they have not suppressed any facts from the knowledge of the Department as all clearances were under invoices and the permission for trading activity was sought from time to time; therefore, the demand is barred by limitation. He relied on the following judgments: - i. Hi Tech Abrasives Ltd. Vs. CCE C, Raipur [2018(362) ELT 961 (Chhattisgarh)] ii. CCE, Mangalore Vs. Pals Microsystems Ltd. [2011(270) ELT 305 (SC)] 4. Per contra, learned AR for the Revenue reiterated the findings of the learned Commissioner (Appeals). He has submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advocate for the appellant who accordingly addressed their response to the facts contained in the said letter. 8. The crux of the allegation of the Department is that the appellant though claimed to have purchased the copper wire from the aforesaid two vendors and without bringing the same into their factory, sold it as such to other customers including one of the vendors, but in fact manufactured the said quantity in their factory premises and cleared clandestinely without payment of duty. The basis of the allegation is that the descriptions of the goods given in the respective purchase invoices do not tally with the description of the goods mentioned in the sales invoices. 9. It is the finding of the authority below is that in the purchase invoices, it is mentioned as copper wire or copper conductor bit, as the case may be, whereas in the sales invoices the description of the goods was shown as copper wire with the thickness of the same, which indicates that goods were brought to the factory, processed and converted into copper wire of required thickness and then sold. The Revenue also heavily relied upon the statements of the Director and also the transporters. On going t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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