TMI Blog2003 (9) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that the appellants are engaged in the manufacture of Gutka, the factory premises of appellants were visited by the Revenue authority. On 12-8-97 on verification of their record, it was found that raw material i.e. Katha, 125 Kgs, Supari 1,037 Kgs, Tobacco 125 Kgs were found short. The statement of Shri Amir Chand Jain, Director of the Company was recorded to the effect that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upari, Tobacco, Katha, Menthol, Elaichi, Perfumes, Sarbitol, Lime, Magnasium Carbonate and the final product is packed in the laminated pouches and on the lamination, they are availing the benefit of Modvat credit. The shortage is only in respect of Tobacco, Katha and Supari and there is no shortage in respect of the other inputs specifically lamination. The contention of the appellant is relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upari. The contention of the appellant is that they are receiving the Supari and thereafter they are cutting the same into small pieces. After cutting the Supari the supari was heated in an oven to make it brittle. During this process moisture is lost and thereafter, supari was passed through the minute jali to remove the supari dust. This manufacturing losses was not taken into consideration by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation which is used in the packing. The appellants also availing the benefit of Modvat credit and there is no shortage of lamination and other inputs. In the decisions relied upon by the appellants, the Tribunal held that shortage of some raw material is not sufficient to prove that the clandestine manufacture and removal of their final product in the absence of evidence to show that the inputs fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of the appellants in respect of loss of weight in the supari due to heating and due to removal of dust arising out of cutting of supari. When a specific plea in respect of the factual aspect is raised by the assessee, then the Revenue authority can reject the same if it is not according to the factual position, in the present case, the plea regarding loss of weight in respect of Supar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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