The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT) has held that goods unloaded in the factory and got mixed in a tank is not an afterthought and dismissed the clearance of Goods without a Lab test.
The appeal has been filed by M/s. Nirma Limited against the order of Commissioner (Appeals) rejecting the appeal filed by the appellant. The appellants are manufacturers of Linear Alkyl Benzine (LAB) and the appellants are also manufacturing “N – Paraffin (NP)”, which is a major raw material for the production of (LAB). The appellants are also importing “N – Paraffin” against an advance license granted by the Licensing Authority.
The appellants have a common storage tank for storing “N – Paraffin (NP)”. The imported “N – Paraffin” as well as the domestically manufactured “N – Paraffin” are both stored in the same storage tank. The appellant cleared 747.195MT of manufactured “N – Paraffin” to M/s. India Power Corporation Limited (IPCL) on payment of Central Excise under cover of 57 excise invoices.
After detailed investigation revenue concluded that out of 747.195 MT cleared by the appellant for home consumption, 335.980 MT was imported “N-Paraffin”. The said conclusion was in respect of 21 invoices out of 57, issued for domestic clearance during which period, did not have the LAB analysis report.
It was also found that the 21 consignments which contained no test report were allegedly imported consignments to M/s. India Power Corporation Limited (IPCL). The said 21 consignments which were imported under advance license were allegedly not unloaded in the factory and were directly cleared to M/s. India Power Corporation Limited (IPCL) in the same vehicle.
The goods imported by the appellant were not unloaded in the factory premises but cleared as such in the same truck, just a little time after arrival, without any testing to M/s. India Power Corporation Limited (IPCL). “The goods were unloaded in the factory and got mixed in the tank is obviously an afterthought”, the appellant argued.
A single-member bench comprising Raju, Technical Member didn’t find any merit in the argument of the appellant and dismissed the appeal.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
