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2016 (7) TMI 987 - AT - Central ExciseDemand of duty - manufacture of gutkha - clandestine manufacture and clearance - Held that:- admittedly the various machines required for manufacture of gutkha were installed in the appellants factory. Not only that the visiting officers also found the pouches of gutkha fully manufactured in the manufacturing premises. The statement of Supervisor recorded at the time of visit of the officers is clearly to the effect that they were engaged in the manufacture of Tufan brand gutkha without obtaining any registration from the department and without even intimating the Revenue. Further, the statements of Shri Abhay Kumar Jain, proprietor of the company clearly accepted the fact of manufacture and clearance of gutkha. We otherwise agree with the contention of the learned advocate that a case of clandestine manufacture and clearance cannot be made solely on the basis of a statement but in the present case, we find that the Revenue did not stop there and investigated the matter further. During investigations, the statement of raw material supplier, the transporters as also the buyers were recorded. The said statements clearly showed that the appellant was indulging in clandestine clearance of their final product. These facts further get corroborated from the fact that raw material as also the final product along with a fully manufacturing set up with power backup and employment of 12 persons including production Incharge and Supervisor was found at the time of visit of the officers. As such, we are of the view that there is sufficient material on record to establish beyond doubt that the appellant was indulging in clandestine activities. Regarding valuation, as such, Revenue has adopted MRP of one packet as ₹ 1/- and has calculated backwards. Further, if the appellant is been able to establish by production of evidence that the goods were sold at less than ₹ 1/- rate, we deem it fit to direct the lower authorities to recalculate the duty. - Decided against the assessee.
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