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2015 (4) TMI 773 - AT - Central ExciseClandestine removal of goods - Bogus transactions - Department was of the view that the transactions of commodity trading shown by the respondent are bogus transactions and represent clandestine removal of manufactured goods - difference between the sales declared in the ER-1 returns and sales figures as reflected in their books of accounts - Held that:- Moreover merely on the basis that the respondent had shown some bogus transactions regarding trading in commodities through commodity exchange and had shown an income of ₹ 35,05,614/- from these transactions, it cannot be presumed that this income was from their manufacturing activity. Merely because their electricity consumption for production of per M.T. of their finished products MS Flats, MS Squares, MS Rounds etc. had varied from 150 units per M.T. to 786 units per M.T. it cannot be presumed that they have under reported their production. In view of this, the duty demand of ₹ 5,77,725/- has been correctly set aside by the Commissioner (Appeals). As regards, duty demand of ₹ 1,05,611/- based on the difference between the value of sales as reflected in their ER-1 returns for 2006-2007 and as reflected in their books of accounts, we have find that the Commissioner (Appals) has discussed this matter in detail and we agree with the findings of the Commissioner (Appeals) that merely on the basis of this difference, it cannot be presumed that the same represents either the value of the clandestinely cleared goods or the value of the goods cleared under the invoices which has been received over and above the invoice amount. - Decided against Revenue.
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