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TMI Blog2014 (12) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... led on the input used in the manufacture of final products. He has also confirmed the duty demand of Rs. 1,70,990/- on the shortage of 3419.80 kg of finished products which were not accounted for and which were alleged to have been cleared without payment of duty as admitted by the appellant M/s. Oriental Aromatics Ltd. He has set aside the penalties imposed on the appellant. Aggrieved of the same, the appellant is before us. 2. The learned Counsel for the appellant submits that the appellants are manufacturer of perfumery product and they used chemicals, essential oils and resinoids in the manufacture of perfumery compounds. In the process of manufacture of the said products, wastage occurs both by way of handling loss as also by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stock register maintained by the appellant confirms that the quantity received from the job-worker's end is duly accounted for in appellant's books. Therefore, there cannot be any demand of duty on the quantity received back and added to the raw material stock. For the year 1994-95, as against total 421,271 kg of raw materials, the quantity manufactured was 419,891 kgs. The difference between the consumption and production was only 1380 kg, which comes to about 0.32%. The learned Counsel submits that the wastage recorded by them is far less compared to the standard input of norms (SION) prescribed by the Government for perfumery products. For example, in the case of Eucalyptol, the standard input of norms stipulates the norm of 1.68 kg of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant cannot go back on this count. Further, during the process of stock taking, the appellant did not point out or claim that certain quantities were lying in process. Therefore, this contention of the appellant is only an afterthought and cannot be accepted. Accordingly, he pleads for upholding the impugned order. 4. We have carefully considered the submissions made by both sides. 4.1 As regards the demand of Rs. 9.12 lakhs (approx.) being the Modvat credit involved on the raw materials found short and not used, we find that difference between the quantity of raw materials consumed and finished products manufactured is very negligible and below 0.5 % in all the cases. We also note that as per the standard input of norms, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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