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2013 (9) TMI 458 - CESTAT NEW DELHISSI Exemption - clubbing of clearance - Manufacture of Goods OR Not – Duty Liability – SSI Exemption Limit - stay - Revenue was of the view that the assessee was engaged in the manufacture of tin containers with the aid of power which are liable to duty of excise - However, as per the appellant, as their clearances were below small scale exemption limit, no duty was being paid by them - Held that:- There was a lot of evidence discussed by the adjudicating authority in the shape of recovery of incriminating documents, inculpatory statements of various persons and verification of fact of manufacture of tin containers in the other two factories - All these evidences ‘prima facie’ lead to conclusion that the tin containers were manufactured in the factory of M/s Sardar Metal Industries and were cleared in the name of the other two units i.e. M/s Ram Containers and Arjun Enterprises, as if the same were manufacturing the goods without the aid of power. As regards the financial condition M/s Sardar Metal Industries stands sold in the year 2003 - the other aspect of the financial position does not stand disclosed on record. Ld. Advocate draws our attention to income tax return filed by Sanjay Arora of M/s Sardar Metal Industries. However, the contention of ld. Jt. CDR is that when the goods manufactured by the said applicant were being sold in the name of the other two units, income tax returns were bound to reflect the low income of the applicant as the consideration of clandestine clearance as never reflected in the statutory documents - We prima facie agree with the contention of ld. Jt. CDR that consideration received against clandestine activity never forms part of the statute reflecting income tax. Waiver of Pre deposit - stay granted partly.
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