CCE Vs. SHASUN CHEMICALS AND DRUGS LTD.

JUDGEMENT

(1.) THE Revenue has filed this appeal against the order in Appeal dated 31.10.03. The respondents Shashun Chemicals and Drugs Ltd, are manufacturers of bulk drugs. They exported 3000 Kgs of Ranitidine Base on 28.7.01. Out of that, 740 Kgs (in 37 drums) were rejected by the overseas consignee and hence the same was re -imported vide Bill of Entry dated 10.8.01 which were cleared by the Customs authorities on 13.8.01 at 16.05 hours. The respondent's case is that after detailed reprocessing overnight in their factory, the goods were re -exported on 14.8.2001 i.e. on the very next day.

(2.) INVESTIGATION conducted by the Department however, led the Department to believe that the re -exported goods were not the same as the re -imported one. The presumption (called later by the adjudicating authority as "preponderance of probability") was due to the fact that the inward register maintained by the respondents in their factory gate, which are not statutory in nature, showed two entries in respect of the same re -imported goods. There was an entry on 13.8.01 at 2 PM and another entry on 14.8.01 at 9.30 Hrs in the inward register, in respect of the very same consignment re -imported by the respondents. In addition, there was also an entry in the outward register on 14.8.01 and the timing indicated here was 11.15 hrs. In addition to the fudging in the Register, the departmental officers also came across some seven numbers of labels glued to 7 drums creating yet another Hitchcoekian dimension : the label contained the following wordings:

(3.) BEING aggrieved by the order of the original authority, the party went in appeal before the Commissioner (Appeals) who allowed their appeal with the following remarks: No evidentiary value has been established by the lower authority, to prove clearances showing clandestine removal of fresh Ranitidine Base from the production stock, and no evidentiary value has been established as to how the returned and rejected Ranitidine Base 740 Kgs has been adjusted or disposed of: Being aggrieved by the order -in -appeal, Revenue has filed the present appeal. The learned SDR representing the Revenue relied upon the Table of Notification No. 158/95 dated 14.11.1995. Contents of para 2 of the of the said Table is reproduced below : Goods manufactured in India and reimported for -