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TMI Blog2014 (7) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... irst schedule to Central Excise Tariff Act, 1985 and registered under Rule 9 of the Central Excise Rules, 2002 for the purpose of procuring duty free inputs used in the manufacture of exempted goods under Notification No. 43/2001-CE(NT) dated 26.06.2001 read with Notification No. 34/2001-CE(NT) dated 21.06.2001. During the course of scrutiny of monthly returns in Annexure-46 for the period August, 2003 to March, 2004 filed by the appellant under Rule 12 of the Central Excise Rules, 2002 read with Notification No. 43/2001-CE(NT) dated 21.06.2001, read with Notification No. 34/2001-CE(NT) dated 21.06.2001, it was noticed that the appellant did not pay Central Excise duty on inputs amounting to Rs. 3,74,557/- on the quantity of shortage/wastag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of exempted goods under Notification No. 43/2001-CE(NT) dated 26.6.2001 read with Notification No. 34/2001-CE(NT) dated 21.6.2001. The Appellants contended that they fulfilled the conditions, safeguards & procedures laid down under the Notification for procurement of the excisable goods without payment of duty for the purpose of use in the manufacture of processing of export goods and their exportation out of India to any country except Nepal and Bhutan. However, it was alleged that the conditions no. 2 specified in the Notification No. 43/2001 CE(NT) and Rule 6 of the Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods.) Rules, 2001 have not been followed, condition 2 stipulates that provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is clarified that for the sake of convenience and transparency, input output norms notified under the Export & Import Policy may be accepted by the department unless there are specific reasons for variation. However, in case, the Input output norms notified under the Export Import Policy do not include all the materials used in export goods, the claims under the scheme should not be denied merely on this ground 8. In this context the appellant authority observed as under:- 8. I further find that it is also on record that input output ratio declared by the Appellants was verified by the Deputy Commissioner through the Range Superintendent and the Deputy Commissioner after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demanded on shortage/wastage whereas shortage of goods would only mean that there has been either clandestine manufacture and utilization of goods not declared to the authorities or that there has been clandestine clearance of raw materials or inputs as such. There is no such charge of either in the Show Cause Notice or in the Order-in-original. I find that this is the case of wastage generated during the course of manufacture of the finished goods out of raw material procured duty free for export with permission of the department, however the Appellants have not proved the input output ratio 100:100 but Appellants have already paid duty on the price of the wastage occurring in the course of manufacturing, hence there is no short pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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