9911796707
TMI Blog2017 (10) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... ry premises on 27/06/2006. On scrutiny of daily stock account, RG-1 register maintained, revealed that the stock of DMO was not recorded therein. Production or clearance of DMO was not mentioned. On physical verification, 71 GI drums containing 12,683.900 kg. DMO (De-mentholized Oil) valued at Rs. 46,93,043/- was found involving duty of Rs. 7,65,905/-. Out of the 71 drums, 55 GI drums were found tagged showing quantity and weight of DMO contained in each drum and 16 GI drums containing DMO were not tagged. Statement of Mr Pawan Gupta, Executive Accounts was recorded, who stated that they also manufacture DMO in their unit and further stated and accepted that they have neither maintained any record for production of DMO nor they have recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerated to recharge/reuse along with Menthol Flakes (Menthol powder)/Mentha oil for manufacture of menthol crystals. It is an ongoing process which is peculiar to the industry. It is always the endeavor of the appellant to obtain maximum final product by charging and recharging the DMO. It is further stated that as the DMO found and seized in the factory premises on date of inspection had not reached the marketable stage, they were under bona-fide belief that they are not required to record the same in their RG-1 register. In their further representation dated 21st August, 2006 to the Assistant Commissioner, the appellant stated that the DMO as found and seized was not marketable and it requires further stages of processing/distillation, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the seized DMO readwith Section 11AC of the Act. Being aggrieved, the appellant preferred appeal before learned Commissioner (Appeals), who vide impugned order was pleased to reject the appeal observing that though action for removal could not be accomplished, but the offence started from the stage when the records were not maintained and the material was not accounted for in the records. 3. Being aggrieved, the appellant is before this Tribunal. 4. The learned counsel for the appellant have urged that the DMO so found and seized was part of the work in progress and not finished goods. The DMO was lying in old drums and quantity lying in each drum was not prefixed. The drums were neither sealed and in most of the cases, there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amples were not tested is best known to the Revenue. Learned counsel further relied on the ruling of a co-ordinate Bench of this Tribunal in the case of Morakhia Metals & Alloys Pvt. Ltd. Vs. C.C.E. & S.T., Ahmedabad-III - 2015(330) E.L.T. 325 (Tri.-Ahmd.) wherein unaccounted finished goods were found on premises. It was held that mere unaccounted goods found in factory premises is not by itself a sufficient evidence of clandestine clearance. There is no admission of intention to clear the goods clandestinely and certificate of chartered engineer has also been produced stating that impugned goods were not fully finished goods, but goods in process requiring further test and operations without which, it did not become final marketable goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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