2021-VIL-676-CESTAT-CHE-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Demand of duty – Appellant/assessee was manufacturer of CTD bars and rods – Officers of DGCEI visited appellant’s premises and on verification of physical stock of raw materials namely MS ingots, it was found that there was shortage of inputs – Appellant clandestinely cleared unaccounted finished products through M/s. MMSD – Adjudicating authority confirmed duty demand along with interest and imposed equal penalty – Tribunal set aside demand in respect of 129.89 MTs of CTD bars – Duty demand in respect of 445.17 MTs of CTD bars was sustained – Issue in regard to duty demand in respect of 615.28 MTs of CTD bars was remanded to adjudicating authority for denovo consideration – In denovo adjudication, Commissioner confirmed demand of duty along with interest and penalty – Hence, instant appeals were filed – HELD - Tribunal has not made any observations with regard to shortage of raw materials – Input output ratio given in EXIM Policy has been adopted to calculate input output ratio of manufacture of CTD bars – Appellant has neither imported raw materials nor do they export their finished products – This ratio has not been made basis for quantification of duty in Show Cause Notice – Commissioner has travelled beyond scope of Show Cause Notice to arrive at duty demand – Duty demand that has been already upheld by Tribunal cannot be added to amount of adjudication in denovo adjudication – Department has not been able to establish duty demand in respect of 615.28 MTs of CTD bars received by M/s. MMSD as alleged in Show Cause Notice – Demand of additional duty is set aside – Duty demand upheld by Tribunal having attained finality is sustained – appeals are partly allowed

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