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2014 (9) TMI 411

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..... rs. No satisfactory explanation was given. The Tribunal held that appellant had manufactured and clandestinely removed 278.274 metric tonnes of MTIL marked lead ingots to GPCL without payment of duty. So, the demand of duty on the goods was sustained. The goods were removed in contravention of Rules 9(1), 52A, 53, 173G and 173F with obvious intent to evade the payment of duty, both Sections 11AB (for interest on duty) and Section 11AC (for penalty) stood attracted. So, the MTIL are liable to pay the duty with interest chargeable under Section 11AB and 11AC. Further, the Tribunal observed that MTIL marked ingots 278.274 metric tonnes were not manufactured by by GPCL, but raw material produced by them. The appellant could not show that dut .....

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..... n the manufacturing of Lead Alloys, Pure Lead and unwrought lead and are availing MODVAT credit on the inputs that are utilized in the manufacture of the same. The raw material is lead scrap in the form of lead ingots and re-melted lead ingots which are off grade material. On 06.09.1999, a team of Central Excise Officers had made a surprise visit to the factory of M/s. Gupta Pigments Chemicals Ltd. (in short GPCL) and checked physical stock of finished goods and inputs, whereupon an excess stock of 105.740 metric tonnes of lead ingots (finished product). The team also visited the premises of the appellant on the same day and found excess stock of 15.020 metric tonnes of lead ingots (finished) vis-a-vis the recorded balance in RG-1 regi .....

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..... ugned order. For the purpose, the appellant preferred a Rectification of Mistake Application (ROM), which was dismissed by the Tribunal. The learned counsel also submits that while dismissing the said ROM application the Tribunal observed that the issue is debatable and requires re-appreciation. The learned counsel further submitted that the learned Additional Commissioner had entered into a wrong finding with respect to the stock of 278.274 metric tonnes, inasmuch as he has stated that the same was identical to the product being manufactured by the appellant even though it was on record that the plant and machinery of the appellant is fully automatic which manufactured ingots with uniform weight of 20 kgs. The variance in weight was due .....

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..... t had manufactured and clandestinely removed 278.274 metric tonnes of MTIL marked lead ingots to GPCL without payment of duty. So, the demand of duty on the goods was sustained. The goods were removed in contravention of Rules 9(1), 52A, 53, 173G and 173F with obvious intent to evade the payment of duty, both Sections 11AB (for interest on duty) and Section 11AC (for penalty) stood attracted. So, the MTIL are liable to pay the duty with interest chargeable under Section 11AB and 11AC. Further, the Tribunal observed that MTIL marked ingots 278.274 metric tonnes were not manufactured by by GPCL, but raw material produced by them. The appellant could not show that duty of excise had been paid on the goods. From the record, it also appear .....

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