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2010 (8) TMI 811 - AT - Central ExciseValuation - undervaluing excisable goods - plywood and block boards falling under Chapter 44 of the Central Excise Tariff - inadmissible SSI exemption - Held that: - except the employees of PBPL, other witnesses are third parties. They were not bound by their own depositions. Once these statements are retracted, they lose their evidentiary value unless they are corroborated by other evidences. One of the important documents relied on by the Revenue is a pocket diary recovered from Mr. Ashraf. The diary showed details of prices of commercial plywood and Phenol Formaldehyde plywood, in adjoining columns for plywood of various grades. The Commissioner has applied the formula 25% of the sale price as accounted and 75% in cash in respect of clearances to SSP and 30% and 70% respectively in respect of clearances to other customers. We find that this methodology may not be appropriate - Undervaluation involving all the clearances made by the appellants during the material period cannot be found by examining clearances made to some dealers though they account for about 50% of the clearances of the assessee. No concrete case of undervaluation and evasion with reference to any particular clearance has been found by the adjudicating authority. The evidence of higher prices realized by PBPL in the form of entries in the pocket planner of Shri Ashraf is not acceptable without corroboration. Same is the case with particulars of invoices related to sale prices reflected in the documents recovered from SSP on 28-4-2004. These documents showed much higher prices for the assessee’s products than the respective amounts on which duty was paid. The impugned order set aside and matter remanded to the Commissioner for taking a fresh decision after following principles of natural justice - appeal allowed by way of remand.
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