9911796707
TMI Blog2023 (9) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 26.03.2010 and it crossed into the State of Uttarakhand on 29.03.2010 - It is found unthinkable that such an industrial furnace with accessories would have reached the factory on the same date and would have been installed, commissioned, tested, trials completed and commercial production also completed and the first invoice for commercially produced goods could have been raised on 31.03.2010 i.e. within two days. There are strong force in the argument of the learned Authorized Representative for the Revenue that under this invoice dated 31.03.2010 aluminium sections were sold which are extrusion products and there was no equipment for extrusion in the factory - In the absence of any contrary evidence Revenue s contention is accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] dated 16.07.2015 was issued to the appellant after detailed investigation which showed to the Revenue that the appellant had, in fact, not commenced commercial production before 31.03.2010. The demand was confirmed by the Commissioner by order dated 22.07.2016 which, on assessee s appeal, was remanded to Original Authority by this Tribunal s order dated 07.11.2017 in view of some contradictory facts mentioned in that order. Thereafter, the impugned order was passed on 27.01.2020 by the Commissioner in the denovo proceedings. The operative part of this order is as follows :- (1) I hereby deny the benefit of Central Excise duty exemption under Notification No. 50/2003-CE dated 10.06.2003 to M/s Agrawal Aluminiums, B-171, Phase I, ESIP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnaces fitted in earth build in-house (moose furnaces) which were functional and the appellant was manufacturing goods ; (iii) The SCN was issued after more than 4 years in the beginning of the investigation and, therefore, is not sustainable ; (iv) The demand of duty, interest and imposition of penalty are, therefore, incorrect and the appeal may be allowed and the impugned order may be set aside with consequential relief. 3. On behalf of the learned Authorized Representative for the Department made the following submissions :- (i) The intimation under the exemption Notification dated 29.03.2010 was submitted to the office of the Deputy Commissioner on 30.03.2010 and the office of the Superintendent on 31.03.2010. A perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific cross sectional profile. It is impossible that aluminium sections emerge out of the Karahai furnace itself. There is nothing on record to show that the appellant had the infrastructure to extrude aluminium sections by 31.03.2020 ; (v) As per the standard input/out norms notified by the DGFT to manufacture 1 kg. of aluminium extruded products 1.05 kg. of aluminium scrap is required. The consumption of aluminium scrap as per the record is only one-third of the final product manufactured ; (vi) For any factory or the furnace to work, one needs to have an electrical connection. Records of the electricity authority show that the appellant had not consumed any power before April, 2010. Although the appellant claimed that it had hired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. It states, inter-alia with reference to the above notification, it is kindly informed to you that we are going to start commercial production from the last week of March . This is followed by the details of the raw materials and final products which the appellant would use and manufacture. The products to be manufactured included aluminium ingots, billets, bars and rods, hollow profiles and tubes and pipes. In other words it included some cast products, such as ingots and billets and some extrusion products, such as, tubes, pipes, bars and rods. The date on which the option shall be exercised is indicated as from the date of start of commercial production (shall be intimated separately) . Since this letter was served upon the Deputy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin two days by consuming a mere on 136.31 kg. of scrap, he claimed that records will be supplied later, but never did so. In the absence of any contrary evidence we accept Revenue s contention that it was impossible for appellant to have produced 430 kg. of sections by consuming 136 kg. of aluminium scrap. Therefore, on the facts of the case we are not convinced that any commercial production was commenced on or before 31.03.2010. 9. It also needs to be noted that when the officers of the Preventive Wing visited the factory months later, on 22.10.2010 and a panchnama was drawn and it was found that the furnace of the factory was still under installation and hydraulic mechanism of furnace and electrical panels were not installed the fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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