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Judgment
This appeal is directed against the impugned order dated 17.01.2006 passed by the Commissioner (Appeals), Customs & Central Excise Bhopal
vide the impugned order, the ld. Commissioner (A) has upheld duty demand on 10,117 Kgs. of semi-finished gelatine alongwith interest and extended
the benefit of 4000 Kgs. of gelatine, holding that the Department has not brought on any corroborative evidence in support of removal of such gelatine.
Penalty of Rs.5,32,800/- imposed on the assessee in the adjudication order was reduced to Rs.2,00,000/-.
Feeling aggrieved with the impugned order dated 17.01.2006, both the Revenue as well as the assessee have filed appeal before the Tribunal. The
appeal of Revenue was disposed of by the Tribunal vide final order No. A/1381/EX (Br.) dated 18.12.2012, restoring the duty demand confirmed on
4000 Kgs. of gelatine in the adjudication order and also restore the adjudication order to the extent of imposition of penalty. The present appeal of the
assessee relates to confirmation of duty demand on 10,117 Kgs. of gelatine confirmed in the impugned order.
The ld. Advocate appearing for the appellant submits that there has been no shortage of semi-finished gelatine which were lying inside the factory
in lumps and in used condition. Further, he also submits that the goods in question were in-processed and not being in finished condition, were not
capable of being bought and in the market. Thus, duty demand on semi-finished gelatine cannot be confirmed against the appellant.
The ld. DR appearing for the Revenue reiterates the findings recording in the impugned order.
Heard both sides and perused the records.
On perusal of the case records, I find no iota of evidence brought by Revenue to prove clandestine removal of semi-finished gelatine by the
assessee from its factory. Further, since semifinished gelatine are not saleable in the market, the charges against the assessee cannot be sustained that
the same were removed from the factory in clandestine manner, without payment of central excise duty. I also find that the submissions of the
assessee that there is no shortage of semi-finished gelatine have not been dealt with by the authorities below.
Therefore, duty demand on semi-finished gelatine cannot be sustained. Accordingly, the impugned order passed against the assessee is set aside
and the appeal is allowed.
[Operative part pronounced in the Open Court]