9911796707
TMI Blog1997 (8) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... has a chequered history. 2. Briefly stating the facts of the case, he submits that the respondents are engaged in the manufacture of cement clinkers classifiable under sub-heading 2502.10 of the Central Excise Tariff Act, 1985. They consumed the same in the further manufacture of cement without payment of Central Excise duty leviable thereon in terms of the Notification No. 119/86-C.E., dated 1-3-1986. The production was started in the respondents unit with effect from 16-9-1986 and the account of clinkers was being maintained by the respondents in Form IV Register, showing production of cement particulars. The respondents were also filing quarterly account of raw-materials in RT-5 returns to the Department. As per the respondents, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Additional Commissioner, the CEGAT vide its Order dated 17-3-1992 set aside the said Order and remanded the matter to the adjudicating authority for de novo adjudication in the light of the directions contained therein. 6. During de novo adjudication, the demand of duty was again confirmed by the Additional Commissioner. However, the amount of penalty was reduced. 7. On appeal against the above Order, the Commissioner of Central Excise (Appeals) set aside the Order of the Additional Commissioner. The relevant paragraph of the said impugned Order is reproduced below for better appreciation :- M/s. Andrew Yule Co. and M/s. Polucon were engaged by the appellant to ascertain the volume of dust and gas and on the basis of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill and Kiln were running. He, further, submitted that the physical stock-verification was conducted by the respondents. This was without involving the Central Excise Department as required under Rule 233A of the Central Excise Rules, 1944. He submitted that the report given by the employees who are interested parties, cannot be taken as the correct report. He also drew the specific attention of the Bench to the unnumbered paragraph 4 appearing at page 7 of their Appeal Memo in support of his submissions, that cement is an evasion-prone commodity and is a mass-consumption item. The production booked on theoretical basis is also cross-verified by dip-measurement process and there is nothing on record to show as to why the said shortage of cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them and the Department was duly informed. 11. The Department s contention that these Test Reports do not lay down any Input-Output Ratio and that they reflect only upon the emission of dust and gas, does not carry any weight inasmuch as the quantum of emission of dust would have a direct bearing on the quantity of the clinkers manufactured and hence on the Input-Output Relation Ratio. The Department s arguments that the cement is an evasion-prone commodity being a mass-consumption item, are arguments in general and cannot be made applicable to the facts and circumstances of the instant case for the simple reason that the same cannot be equated to the evidence. The Department s allegation that the said clinkers had been used by the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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