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TMI Blog1998 (11) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... f Plastics in the form of any consumption or despatch register, by which it could be inferred undisputedly that the goods were really used for manufacture of "Plastics". He has held that the submission of a mere L-4 licence is not any solid proof that they have manufactured Plastics out of the raw-material Solvent C-IX. He has also held that the company might have continued with their licence but the production of "Plastics" might not have been continued. He has held that there is nothing to establish beyond doubt that they had used Solvent C-IX in the manufacture of Plastics, even if it is assumed that such plastics was manufactured by them. He has held that the burden of proof regarding the actual use of the goods is on the assessee under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not have power to invoke the provision of Section 11A of the Act. It is stated that in case if the evidence produced was not acceptable, it is for the Revenue to establish that the evidence produced was not legal, tenable and acceptable. The department had not done so and therefore, the lower authorities were bound to have accepted the evidence. It is also stated that the Additional Collector has not applied his mind except to make his observation. 3. We have heard the learned DR in this matter. 4. On a careful consideration of the matter, it is seen that the RG 16 has been scrutinised, checked and accepted by the Superintendent of Central Excise. The other documents in the form of AR 3s has also been checked and signed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 and L-6 licences since April, 1982 in terms of the provisions of Notification No. 276/67-C.E., dated 21-12-1967 and are thus authorised to obtain benzene, benzol, Solvent C-IX etc. for the purpose of manufacture of synthetic/alkyd resins. The appellants, according to him, followed Chapter X procedure, in receiving Solvent C-IX from M/s. Indian Petro-Chemicals Corporation Ltd., Vadodara, at nil rate of duty on AR 35, which were duly warehoused by the jurisdictional Central Excise Officer. Elaborating on his submission, it was contended by him that the appellant's company received seven consignments of Solvent C-IX in tankers during the period from June, 1982 to December, 1985 and used the same for special industrial purposes in the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot any solid proof that they have manufactured plastics out of the raw-material Solvent C-IX. 7. I have considered the above submissions. I observe that it is not in dispute that the appellants were holder of L-6 and L-4 licences. It is also not in dispute that the solvent in question was brought under Chapter X procedure for use in the manufactured commodity covered by Notification No. 276/67. The main allegation against the appellants, as mentioned in the show cause notice is that instead of using the quantity in question in the manufacture of the product covered by the aforesaid notification, it was diverted for use in the manufacture of paints and varnishes which were not covered by the said notification and the benefit was avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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