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TMI Blog2021 (3) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... for issuance of the Show Cause Notice is by reference to the standard input-output norms fixed in respect of the concerned industrial activity - the standard input-output norms can be treated as an indicator and that may not be a sole reason for initiation of proceedings. This aspect was considered by the High Court of Gujarat in the case of Goodluck Garments Pvt. Ltd. Vs. Commissioner of Central Excise Customs, Surat-II [ 2019 (1) TMI 1514 - GUJARAT HIGH COURT] . The argument of the assessee therein was that the input-output norms were in the nature of guidelines and not a fixed formula. This aspect was considered and the Court held that the mere fact that the wastage was in excess of the input output norms, without anything more, would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E MR. JUSTICE T.S.SIVAGNANAM AND HONOURABLE MS. JUSTICE R.N.MANJULA For Appellant: Mr. B. Satish Sundar For Respondents: Mr. A.P. Srinivas Senior Standing Counsel JUDGMENT ( Delivered by T.S. Sivagnanam,J ) This appeal, filed by the appellant-assessee under Section 35G of the Central Excise Act, 1944, ('the Act' for brevity) is directed against the order dated 04.11.2015 made in Final Order No.41495/2015 passed by the Customs, Excise Service Tax Appellate Tribunal, Chennai ('the Tribunal' for brevity). 2. The appeal was admitted on 07.04.2016 on the following reframed substantial questions of law: 1. Whether in the facts and circumstances of the case, the failure of the Tribunal, to arrive a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicating Authority to conclude that the assessee has disposed of the wastage at the value of ₹ 2/- per kg without obtaining the permission of the proper officer is correct or not. 6. The reason for issuance of the Show Cause Notice is by reference to the standard input-output norms fixed in respect of the concerned industrial activity. 7. In our view, the standard input-output norms can be treated as an indicator and that may not be a sole reason for initiation of proceedings. This aspect was considered by the High Court of Gujarat in the case of Goodluck Garments Pvt. Ltd. Vs. Commissioner of Central Excise Customs, Surat-II reported in 2019 (365) E.L.T 893. The argument of the assessee therein was that the input-output ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have not hidden any facts and have not caused any reason for the Adjudicating Authority to believe that the facts were suppressed. Therefore, the so called letter issued by the assessee cannot be taken to be a case where the assessee accepted the fact that they have not utilized the raw materials for the purpose for which it was imported. 10. Therefore, we are of the view that the materials which were available cannot be a reason for issuance of the Show Cause Notice dated 16.09.2009. Consequently, the Order-in-Original No.23 of 2009 cannot be sustained. 11. In the result, the appeal filed by the assessee is allowed on a different ground than what was raised by the assessee, namely that standard input-input norms cannot be a sole basi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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