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TMI Blog2015 (8) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to undertake the said exercise which was not possible in such a short period due to the large number of inventory which was there at the site. Nothing was brought on record, in any manner, to show that to manufacture such a large amount of 14,25,900 pieces, there was material which had been consumed since neither any relevant record had been shown to show that electricity had been consumed or labour had been utilized to manufacture the said quantity. Neither the fact of purchase of raw material from the vendors or the sale to the consumers was brought on record. In the absence of any corroborative evidence, the levy of such a huge demand was, thus, totally arbitrary and has been rightly set aside. - Decided against Revenue. - CEA No. 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent-assessee, who is manufacturer of fasteners i.e., nuts and bolts, washers, rivets etc., was issued a show cause notice dated 25.04.2006 on account of the inspection on the premises dated 19.12.2005. At the time of inspection and after making physical verification in the presence of the Proprietor and the Production Manager, shortage of 14,25,900 pieces of nuts and bolts valued at ₹ 14,76,183/- was detected which involved evasion of tax to the tune of ₹ 24,26,480/-. Notice was issued on the basis of admission made by the Proprietor that the said quantity of finished goods were cleared on cash sale basis, without issuance of any invoice and without payment of Central Excise Duty and without the names and addresses of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also pointed out that the entire account of duty had already been deposited on the same date of the visit and the show cause notice was of the same amount and it was not required to be issued and no penalty could be imposed, in such circumstances as the payment had been made prior to the notice being issued. Without meeting any of the contentions which were raised in the show cause notice, the Adjudicating Authority, however, confirmed the demand and also directed that interest be paid along with penalty of the equal amount, both upon the manufacturer and the Proprietor, separately, vide order dated 17.07.2006. 5. The manufacturer preferred an appeal which was allowed by holding that the confessional statement/admission could not be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would lie upon the Department to undertake the said exercise which was not possible in such a short period due to the large number of inventory which was there at the site. Nothing was brought on record, in any manner, to show that to manufacture such a large amount of 14,25,900 pieces, there was material which had been consumed since neither any relevant record had been shown to show that electricity had been consumed or labour had been utilized to manufacture the said quantity. Neither the fact of purchase of raw material from the vendors or the sale to the consumers was brought on record. In the absence of any corroborative evidence, the levy of such a huge demand was, thus, totally arbitrary and has been rightly set aside. 9. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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