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TMI Blog2017 (3) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... als - the search was conducted against the Board Circular dated 19.12.2007 and the duty demand is based on the wrong facts - appeal dismissed - decided against Revenue. - Excise Appeal Nos. 3146 & 3147 of 2010 - FINAL ORDER NO. 50938-50939/2017 - Dated:- 16-2-2017 - Mr. (Dr.) Satish Chandra, President and Mr. V. Padmanabhan, Member (Technical) For the Appellant : Sh. H.C. Saini, DR For the Respondent : Sh. Aditya Kr. Rupesh Kr., Adv ORDER Both the appeals are filed by the Department against the order-in-original no. COMMISSIONER/RPR/21/2010 dated 26.03.2010 passed by the Commissioner of Central Excise, New Raipur. 2. The brief facts of the case are that the assessee-Respondent is registered with the Department and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouch of Gutkha, the number of pouches that could have been manufactured using the raw material found short was worked out. On comparing this number with the average rate of production of the machines installed in the unit, it was found that the unit had suppressed the production of Gutka involving duty amounting to ₹ 112.50 lakhs and clandestinely removed the same. Accordingly, a show cause notice dated 01.10.2009 was issued. The Commissioner vide impugned order dated 29.03.2010 dropped the proposed duty and penalty. Being aggrieved, the Department has filed the present appeals. 3. With this background, we have heard Shri Aditya Kumar and Shri Rupesh Kumar, learned counsels for the assessee-Respondent and Shri H.C. Saini, learned D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pection by the Department. No more number of packing machines were used by the assessee-Respondent, as mentioned in the show cause notice. Needless to mention that as per the Board Circular No. 81/17/2007-Cx.3 dated 19.12.2007, the units who opts for the operation under the compounded levy scheme should not be subjected to routine inspection or search. But, in the instant case, by violating the Board Circular dated 19.12.2007, the search was conducted and shortage of raw material was made ground for demanding the duty. The Department has converted the number of hours into days and months, and has calculated duty accordingly. It may be mentioned that the said exercise has been carried out for each raw material separately, assuming that gutkh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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