9911796707
TMI Blog2004 (1) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... n, DR, for the Respondent. [Order]. Appellants are manufacturer of Rin Concentrate Powder (hereinafter referred to a RCP) an Organic Surface Active Agent and held a registration and kept accounts. During the manufacture of RCP a large quantity of RCP Oversize (hereinafter referred to RCP-OS) emerged which was not marketed due to quality problems. While RCP accounts of production clearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the material on record that the investigators have not led any reliable evidence to fix the opening balance of RCP-OS at 503 MT and that merely because a procedure of Rule 57F(3)/F(4) is not complied would not be sufficient evidence to conclude clandestine manufacture and clearance. This was required to be discharged by the department and they have not discharged the dues and concluded there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workers, the principal manufacture is required to pay duty on it. As such in this case also when there is a shortage of 74 MTs, the assessee is required to pay duty on it. The value of 74 MTs. RCP @ Rs. 36,334/- per MT comes to Rs. 26,88,716.00 and the Central Excise duty on it @ 30% ad valorem. comes to Rs. 8,06,615.00 which is recoverable from the assessee under proviso to Section 11A(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) Penalty of Rs. 1.00 lakh is also imposed on M/s. Hindustan Lever Ltd., Chhindwara under Rule 173Q of the Rules. (v) Interest on the demand confirmed above shall also be payable at the prescribed rate as stipulated under Section 11AB of the Act. (vi) Show cause notice v (34)15-2/97/Ind-II/Adj-I/16835-37 dated 27-3-98 is accordingly disposed off. Hence this appeal. 4. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of processing in this case. This acceptable 1% loss when it is considered that total 74 MTs not accounted would amount to 0.38% of the turn over, which would be well within the acceptable loss, keeping the nature of processing would require to be condoned. The rejection of processing loss and reasons thereof are not upheld, when the commercial contracts entered into with the job workers are exhibi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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