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TMI Blog2018 (3) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... he Order-in-Appeal No.178/PAT/C.Ex./Appeal/2011 dated 19.10.2011 passed by Commr.(Appeals) of Central Excise, Customs S. Tax, Patna. 2. Briefly stated the facts of the case are that the respondent-assessee is engaged in the manufacture of M.S.Ingots classifiable under Chapter 72 of the Central Excise Tariff Act, 1985. A Show-Cause Notice dated 17.04.2008 was issued to the respondent and two employees of the respondent and M/s Shree Metaliks Ltd. alleging that the respondent assessee procuring sponge iron from M/s Shree Metaliks Ltd. against the name of the fake firm. The Adjudicating Authority dropped the proceedings. Revenue filed appeal before the Commissioner (Appeals). By the impugned order, the Commissioner (Appeals) dismissed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 24 of Central Excise Rules, 2002 is permissible only when the Central Excise Officer has reason to believe that the goods are with intention to evade the duty payable on such goods. Thus, the law is crystal clear that the ownership of goods cannot be the reason to seize the goods rather the only reason for which the goods can be seized is the clandestine removal. The law is also very clear that the seizure can only be made for the reason of non-payment of duty on finished goods, but, in any case raw material cannot be seized unless there is wrong availment of cenvat credit, and input can be confiscated and penalty imposed in terms of Rule 15 of Cenvat Credit Rules, 2004. Under the facts and circumstances of the case and the law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d if the Sponge Iron procured and not accounted, these ingredients must also have been procured unaccounted. But there being no such evidence on record, the department failed to establish any un-accounted manufacture of finished goods and clandestine removal thereof. The other assumption made by the Revenue that the demand drafts drawn on State Bank of India, Exhibition Road, Patna Branch, but it cannot be inferred that these drafts have been made by the assessee. There are lot of industries in the Patna region who use Sponge Iron and the assessee is not alone, the only manufacturer of M.S.Ingots. In such circumstances, it cannot be said that the drafts were made only the assessee M/s Dina Metals Ltd. The entire case is based on assump ..... X X X X Extracts X X X X X X X X Extracts X X X X
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