TMI Blog2014 (8) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... red to be enclosed. However, while doing desk review under risk management details regarding pattern of sale etc. are obtained from the manufacturer for study to decide areas of audit. Statutory documents like RG-1 register, invoices and balance sheet are available with the manufacturer for the inspection of audit team. It is difficult to appreciate that the first audit team, which audited the unit in 1998, failed to see all these documents in order to know the sale of pattern adopted by the respondent. It has been specifically noted by the first appellate authority that the invoices and the RG-1 register were specifically brought to the notice of the audit. The first appellate authority has given a detailed reasoning as to why extended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise duty of ₹ 3,44,374/- for the period 2000-01 to 2005-06. It was also proposed in the show cause notice to recover interest and impose penalty upon the respondent. Show cause notice was confirmed in to by the adjudicating authority under OIO dated 15.9.2006 against which respondent filed appeal with the first appellate authority who confirmed the OIO dated 15.9.2006 on merits but on limitations passed the order in favour of the respondent. 3. Shri J. Nair (AR) appearing on behalf of the Revenue submits that Commissioner (Appeals) has wrongly held that extended period is not applicable because the monthly/quarterly returns filed by respondent did not contain copies of the invoices and balance sheets prepared by the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same was paid before the issue of show cause notice. On the time bar issue, it is the case of the respondent that their records were audited by the Central Excise audit party in 1998 for the period 16.9.1996 to March 1998 and no objection was raised with respect to valuation. The first appellate authority has given the following observations in Para 7 of the OIA dated 18.1.2007 which are reproduced below:- 7. However, as regards limitation is concerned, I do admit that there appears to be no material evidence on record by which it can be safely concluded that the appellant company has suppressed material facts or did not declare the facts before the Central Excise authorities. Any one on cross verification or even on a closer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e misdeclaration, collusion or any act of commission or omission which could be termed such as having been done with an intent to evade payment of duty. Therefore, the Revenue cannot charge the assessee of malafides or of contravention warranting imposition of penalty or for attracting larger period of demand against such assessees. If the departmental officers did not bother to carry out their normal duty and failed to examine the monthly returns with details of clearances and failed to examine the nature of transactions in depth and details, than at later stage of time period, they should not allowed to burden the assessee by slapping the charge of suppression of facts or misdeclaration with intent to evade payment of duty for warranting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is the case of the Revenue that the documents like invoices or balance sheet are not supplied along with monthly/quarterly returns and audit team of 1998 may not have seen the sale pattern of the respondent. In this regard it may be correct that along with monthly/quarterly returns filed with the Revenue documents like invoices and balance sheets are not required to be enclosed. However, while doing desk review under risk management details regarding pattern of sale etc. are obtained from the manufacturer for study to decide areas of audit. Statutory documents like RG-1 register, invoices and balance sheet are available with the manufacturer for the inspection of audit team. It is difficult to appreciate that the first audit team, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
