9911796707
TMI Blog2008 (4) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... lty on the ground that the appellant had not used the inputs received under Chapter X procedure for the specified purpose during the period 1-12-91 to 16-6-93. The contention of the appellant is that they are engaged in the manufacture of diesel engine and centrifugal water pumps. The diesel engine of the capacity of and below 10 HP and centrifugal water pumps were exempted from payment of duty. The appellants were receiving non-duty paid inputs under the provisions of Chapter X of Central Excise Rules for the manufacture of diesel engine and water pumps. The contention is that all the inputs which were received under Chapter X procedure were used in the manufacture of the pumps and diesel engine. The contention of the appellant is that bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records regarding the inputs which were received by the appellant without payment of duty, not properly accounted for, and the records were maintained as per convenience. The contention of the Revenue regarding evidence produced by the appellant, is that the same is not verifiable, therefore, the adjudicating authority rightly rejected the same. As the appellant could not explain the use of the inputs received by them without payment of duty, therefore, the demand is rightly made. The Revenue relied upon the decision of Hon'ble Supreme Court in the case of CCE v. Hari Chand Shri Gopal reported in 2005 (188) E.L.T. 353 to submit that the procedure required under Chapter X was required to be strictly followed. The contention is that when an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing details of items manufactured by them for the month of December 91 to June 93. (d) Internal audit report for the period Dec'91 to June'93 containing details of inputs used and the goods manufactured. (e) Pamphlets showing different models of I.C. diesel engines and technical specifications of the engines manufactured by them. (f) Manual book of diesel engines. (g) Pamphlet indicating the technical specifications of the different types of pumps. But the said authority has not taken into account any of those pleas. We find substantial force in the plea of the appellant that merely because certain types of diesel engines and water pumps were available on 16-8-96 on the day of second visit of the concerned officers, it does not mean th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty, the appellant produced monthly internal audit reports, for the relevant period, showing the details of inputs received in stock and their consumption in the manufacture of specified goods. The appellant also produced by way of Annexure-E details of challans under which the final product was cleared and also date wise details relating to sale of various diesel engines and pump sets during the relevant period. The appellant also produced statement on the basis of records maintained by them the details of inputs received in Chapter X Procedure and their consumption in the production of finished products showing that all the inputs received under Chapter X Procedure are used in the manufacture of specified goods. This evidence produced by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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