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2017 (8) TMI 217 - AT - Central ExciseClandestine removal - undervaluation - plastic bags - The main allegation raised against the appellant is that they received orders from their customers for supply of plastic bags and such orders were placed on weight basis after specifying the size, thickness of the bag. Though the orders were placed on the basis of size and thickness and weight of the bags which was noted by appellants on chits, the appellants raised invoices to customers for lesser value on the basis of the quantity shown in numbers. Held that: - it is pertinent to mention that the appellants have not come forward with a plausible explanation as to why they have not mentioned the size and thickness of the plastic bags in the invoices/cash bills when they have mentioned the size and thickness of the bags in the chits. It is admitted by appellants that they were noting down the size and thickness and the corresponding value while orders are placed by the customers. Such chits have been recovered by the department from the sale office of appellant unit. These when compared with the invoice have brought to light that there is much undervaluation by not mentioning the size and thickness of the bags. The appellants have mentioned the quantity of the bags in numbers and have applied the rate for number of bags thereby showing a lesser value for the bags cleared by them. It is also brought out from the evidence from dealers / purchasers like Jegan and MR Plastics that the appellants have cleared plastic bags by issuing chits only and not issuing any invoice or cash bills at all. Such clandestine removal of finished product is unearthed from the evidence collected at the end of transporters also. Thus, we have to say that the department has been able to establish clandestine clearance on the part of the appellants. Quantification of clearances - Held that: - the demand is confirmed for the period 2003 04 to 2004 05 (upto 1.11.2005) when the value of clearances exceeded one crore. Therefore, we do not find any ground to doubt or interfere with the quantification of duty also. Extended period of limitation - Held that: - The facts and evidence establish that appellants have indulged in undervaluation and unaccounted clearances with an intention to evade payment of duty. The same would not have come to light but for the investigation conducted by department - invocation of extended period justified. Appeal dismissed - decided against appellant.
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