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TMI Blog2009 (2) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim by the appellants that these goods were manufactured in WCPL only, even though inscription in some bags indicated as if manufactured by SCM and SII. - We find that the explanation by the appellant is acceptable in the absence of any other evidence to show that the goods were manufactured by SCM and SII with the brand name of WCPL for the period 1-4-94 to 31-3-95. Therefore, the demands are not sustainable – regarding shortage of raw material, cenvat credit of the amount of raw material found short, is required to be reversed – Penalty not sustainable - E/4148 and 5016-5017/2004 - 211-213/2009-EX(PB), - Dated:- 26-2-2009 - S/Shri M. Veeraiyan, Member (T) and P.K. Das, Member (J) REPRESENTED BY : S/Shri Bipin Garg, Advocate w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by SII. (c) Commissioner held that the firms SCM and SII both have cleared chemicals during the period from 1-4-94 till 31-3-94 (sic) with the brand name of WCPL making them ineligible to SSI exemption in view of amendment to Notification No. 1/93-C.E., dated 28-2-1993 with effect from 1-4-94 and accordingly, confirmed a demand of Rs. 8,41,764/- from SCM and Rs. 9,24,584/- from SII. There was shortage of one raw materials namely, soda ash in each of the three units. He held that the same have been used in the manufacture of final product and the final product have been clandestinely removed and demanded duty amounting to Rs. 1,29,477/- from WCPL, Rs. 3,81,933/- from SCM and Rs. 4,15,044/- from SII. He imposed a penalty of Rs. 1,38,533/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been taken by them of the duty on the soda ash which was found short. As regards penalty on WCPL, he submits that the same is not sustainable as there is no evidence of any unaccounted manufacture of the chemicals and clearance of the same as alleged. Further, "WCPL" is a brand name owned by them and there was no violation of the condition of Notification 1/93-C.E. in so far as clearances by the company WCPL is concerned. 4.3 He is not disputing the findings of the Commissioner in regard to the demand confirmed by him in respect of other issue. 5. Learned DR submits that the existence of 4 bags and 45 bags in the 300 bags seized from the truck containing the inscription that they were manufactured by SCM and SII respectively and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of BCS and sodium sulphate as evidenced from their Income Tax returns, than the clearances reflected in their RG-I register and have thus evaded central excise duty of Rs. 16,884/- during the years 1990-91 and 1991-92? (iv) Whether penalty is imposable on M/s. WCPL, M/s. SCM and M/s. SII under erstwhile Rule 9(2), 52A, 173Q and 226 of the then Central Excise Rules, 1944, and (v) Whether penalty is imposable on Shri D.S. Sodhi, Shri R.K. Bajpai, Shri Diwakar Trivedi and Shri Pradeep Kumar Saxena under erstwhile Rule 209-A ibid for their involvement in the duty evasion?" 6.2 The Commissioner decided the issues in para (i) and para (ii) against the appellants which are being contested. In respect of para (iii), the Commissioner has par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M and SII with the brand name of WCPL for the period 1-4-94 to 31-3-95. Therefore, the demands against SCM and SSI on this issue as contained in para (i) above are not sustainable. 8. We find from the submission of the learned Advocate that for manufacture of finished products three raw materials soda ash - 28%, chrome ore - 46% and lime - 26% were required. The Commissioner, on the basis of shortage found in soda ash came to a conclusion that proportionate quantum of finished products have been manufactured and clandestinely removed. We do not agree with this findings in the absence of any other evidence to support the same. However, we hold that since soda ash, the raw material on which Cenvat credit was taken by the appellant was f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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