9911796707
TMI Blog2024 (3) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... t of raw materials should be found to match that of finished goods and that, in the event of gap if any, the difference should be explained. There are no provision in Central Excise Act, 1944 that authorises duty recovery in such circumstances. There is no allegation of clandestine removal in the show cause notice let alone any evidence thereon. Even if such gap was ascertained, and explanation not found acceptable, this could, at best, be used to corroborate alleged illicit removal which is not alleged here. Effectively, duty is sought to be collected on what be alleged to be inefficiency which the statute does not envisage. There are no reason to sustain the demand, interest and penalty - the impugned order set aside - appeal allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability on such raw material that was not adequately responded to. 3. We have heard Learned Counsel for appellant and Learned Authorized Representative for Revenue at length. The former submitted that duty liability was confirmed on presumption and conjecture without any evidence. It was pointed out by Learned Authorized Representative that short payment of duty in the guise of process loss warranted the consequence now impugned. 4. We take note that the impugned order has proceeded to uphold the demand and penalty thus 9. The appellants claim to process loss is unusually high. It will be very difficult, in the present days of severe competition, for any kind of industry to survive with 15% to 16% process loss. Every industry try to bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed to prove their claim. (ii) Hon'ble Tribunal in the case of Hindustan Copper Ltd as reported in 2013 (290) ELT 701 ( Tri-Mumbai) observed that Penalty - Imposition of - Preocess Loss Copper waste/scrap conversion to cathodes by heating/melting - Loss to the extent of 5.4% - HELD : Loss was reasonable there was no technology available which could eliminate such process loss - So long as it was within reasonable limits, it has to be permitted . Whereas in the instant case, the loss is unreasonable. (iii) Hon'ble Tribunal in the case of Shree Kanga Steel (P) Ltd, as reported in 1998(100) ELT 253 ( Tri), it was held that uDemand -Clandestine removal - Shortage - Evidence - Physical examination of the input material carried out by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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