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TMI Blog2024 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Section 2(f) of the Central Excise Act 1944. After this, necessary Excise Duty is paid on the small pack being cleared by them - the work undertaken by the Appellant is not an activity of normal manufacture wherein the bought out raw materials are converted into finished goods. The appellants are actually undertaking the activity on behalf of IOCL and they are fully responsible for the stock reconciliation to be provided to IOCL after converting the bulk lubricants into smaller pouches. Without any dispute, the goods in question were very much found within the factory premises and they are not seized while they were being transported without any proper document. It cannot be seen as to how the Department can presume that these w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Authorized Representative for the Revenue ORDER R. MURALIDHAR : The Appellants were carrying work of packing and filling of Lubricating Oil in pouches from bulk volumes for IOCL. A physical verification of stock was conducted by the Department. They found that some quantity of packed consignments in pouches were available physically, but the same were not carried forward in the Daily Stock Register. On the ground that the goods were kept in such a condition so as to remove the same clandestinely, a Show Cause Notice was issued on 01.07.2010 seeking to know as to why the goods valued at Rs.4,42,108/- should not be confiscated under Rule 25 of Central Excise Rules, 2002. The Show Cause Notice also sought to know as to why penalty should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.The goods were very much within the premises of the Appellant. Therefore, she submits that the Revenue is in error in presuming that they are likely to be removed without payment of duty at a later date. She relies on the following case law:- Kisan Sahkari Chinni Mills Ltd. v. COMMR. OF C. EX. S.T., MEERUT-II [2017 (347) E.L.T. 509 (Tri.-All.)] 4. The Ld.AR for the Department submits that the physical stocks were found which were not recorded in the Daily Stock Register. Therefore, he justifies the confiscation of these unaccounted goods. 5. Heard both sides and perused the appeal papers and other documents on record. 6. Admittedly, the Appellant is carrying the job-work for IOCL. They get the bulk lubricant from IOCL and the same are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity is a normal variation and no adverse inference is called for. Further, I take notice of the fact that the State Excise authority, who are in physical control of the stock of molasses of production, storage and dispatch in the appellant s factory have accepted the recorded stock and at the end of the molasses season have accepted the net excess at 961 qtls. Therefore, I hold that the whole demand is based on assumption and presumptions and is fit to be set aside. Accordingly, I allow both the appeals and set aside the impugned orders. The appellant shall be entitled to consequential benefits, if any, in accordance with law. 8. In the present case also, it is clear that the bulk quantity has been given to the Appellant by IOCL for convers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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