1991 (2) TMI 278

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..... have been availing benefit of Modvat credit in respect of various soap compounds used as input in the manufacture of soap by filing declaration under Rule 57(G). The appellants were charged with the contravention of Rules 57(F)(i),57G(3)(i) and 173Q of Central Excise Rules, 1944 on the ground that quantity of 1472.500 Kgs. of Soap compound was found lying in excess of the recorded balance in RG-23A Part-1 in their store room though the Modvat had already been availed of on this quantity. The Additional Collector who adjudicated the proceedings observed that the goods found over and above the recorded balance were not to be used as inputs in the manufacture of soap but were likely to be disposed of in other way and as such no Modvat was ava .....

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..... t permissible since the soap compound was not used as input, as such though it was shown as issued for use in the manufacture of soap. 4. We have considered the arguments advanced on both sides and perused the records. We concur with the argument of the appellants counsel that even an ex parte order should be based upon some facts and figures. It should not be proceeded on mere assumptions and presumptions. In the present case the adjudicating authority has proceeded to conclude his findings in disallowing the Modvat benefit on the assumption that soap compounds are likely to be disposed of other than their use in the manufacture of final product as input but without positive proof. Since it was clearly shown as issued for use in the man .....

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..... he department s own case as made out and recorded by the Additional Collector himself under the heading brief facts of the case in the Order-in-Original and no basis for this observation has been indicated. 8. A reading of the department s own version of the brief facts referred to above indicates that the Preventive party had found some quantity in excess of the recorded balance in RG-23A Part-1 in their store-room . Further the quantity said to be in excess was lying in the store-room and the officers were worried about the fact that this quantity had not been actually used till then although shown as used in the manufacture of soap. They thought that it was kept for clandestine removal and disposal for some other purpose. 9. The .....

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