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2016 (6) TMI 867 - AT - Central ExciseDemand if duty of excise on clandestine removal on best judgement method - Bonafide mistake - extended period of limitation - It was contended that, the appellant is a maker of sweets/biscuits/pastries. Sweets, though excisable are exempted from duty. Biscuits/pastries are dutiable and attract duty on MRP basis. The appellant was not aware of this and therefore did not pay duty on these goods. Held that:- The appellants were manufacturing both excisable and dutiable goods but they are not maintaining any separate accounts in respect of manufacture of dutiable and exempted goods. It is stated that appellant did not mention description of goods on the sale bills and that there was huge variations between the total turnover declared by the appellant for the purpose of VAT payment and printouts taken by the Central Excise Officers for report of previous period. This difference is, explained in the statement given by Sri Vikram, a Software professional, who created the Software of print-out for the appellants. He deposed that there is technical problem in the Software in regard to generating report of print outs. Thus the figures of sales in the print outs could not be relied, for calculating the demand. The adjudicating authority has arrived at the duty demand, basing on the VAT returns, as there was no reliable records and details furnished from the appellant side. - Thus, though the adjudicating authority has used the words best judgment method for calculation of the duty demand in effect, he has placed reliance on the VAT returns and other documents available. When there was no data to arrive at the actual clearances made, the department has adopted the method best possible which may include a little guess work. Therefore, I cannot accept the argument of the learned counsel for appellant that the charges are merely based on theoretical working. - Demand confirmed - Decided against the assessee.
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