9911796707
TMI Blog2005 (4) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... nd powder; that on visit to their factory on 20-6-1998, the Central Excise Officers found shortage in raw material - 5.664 M.Ts. sodium silicate and 7.934 M.T. LAB; that the Joint Commissioner, under Order-in-Original No. 47/99, dated 9-7-99 confirmed the demand of duty and imposed penalty holding that Shri Rajan, Factory Manager has signed the Panchnama and has debited certain amount of duty and there is nothing on record to question the validity of Panchnama; that the Commissioner (Appeals) also rejected their appeal in this regard observing that the reasons given for shortage of inputs by them are baseless for the reasons that they have not substantiated the facts with any documentary evidence. The learned Advocate submitted that Shri Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn in the statutory record as the Department has found the shortage on account of balance shown in statutory records vis-a-vis physical stock of raw material available in the factory. Accordingly I find no reason to interfere with the finding regarding shortage of inputs. The demand of duty is thus upheld. Penalty which is on the higher side is, however, reduced to Rs. 10,000/-. The appeal filed by M/s. Vishwa Organics Pvt. Ltd. is disposed of in these terms. 5. The Central Excise Officers has also noticed during their visit of the factory premises that the assessee had received back two consignments of acid slurry for reprocessing. The enquiry revealed that the acid slurry is remade by reacting the same with sulphuric acid and stored in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... melting and reprocessing for removal of defect is not remanufacturing. 6. After considering the submissions of both the sides, I observe that the Department has not disputed the return of duty paid acid slurry for reprocessing under the provisions of Rule 173H of the Central Excise Rules, 1944. The Department has also not disputed the fact that procedure prescribed in the said Rule was followed by the assessee. A harmonious construction has to be made otherwise the provisions of Rule 173H will become redundant as every process taken by any manufacturer in the case of the return of duty paid defective goods would amount to manufacture in terms of Chapter/Section Notes, if any. Moreover, if the assessee is asked to pay duty on reprocessed g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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