9911796707
TMI Blog2013 (5) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... for the petitioner and Sri Shambhu Chopra, learned counsel for the respondents. The petitioner is a company incorporated under the Indian Companies Act, 1956. It has established a factory for the manufacturing of Single Super Phosphate Fertilizer at Bewer Road, Fatehgarh, Farrukhabad in the year 1984-85. In the manufacture of Single Super Phosphate, one of the raw materials is Rock Phosphate. The petitioner claims that Sulphuric Acid is also raw material and the said item is excisable under the Central Excise Act. The further claim of the petitioner is that it is manufacturing Single Super Phosphate in the ordinary course of business. By means of the present petition the petitioner has questioned the legality and validity of the notice i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner has escaped assessment as the petitioner had been dealing with two such firms named by Sri Jugual Kishore Soni in his statement. For the sake of convenience the reasons recorded by the authority concerned are reproduced below:- "A survey was conducted on 7.10.99 at the premises of one Shri Jugul Kishore Soni s/o Late Shri Dasrath Prasad, r/o Sarafa Bazar, Talbehat Distt. Lalitpur Distt. During the course of survey it was found that the above mentioned person and his family members were indulging in fake sale of rock phosphate which is raw material needed for manufacturing SSP. It was further admitted that they only gave fake bills of the above to the various manufacturers of SSP so as to enable them to obtain the subsidy from the Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that these vehicles are either not trucks, or do not exist, in as much as the so called Registration numbers have not been released yet, in some cases they are auto Rickshaws, in one case it is a Dumper and so on. Furthermore, as per I.T.O. Lalitpur's report, page 2, sl. Nos. 1 to 15, the Transport Companies through which the alleged transport of 'rock phosphate' has been made, are nonexistent for the last 5 to 10 years, which further proves the falsity of such purchases of rock phosphate and thereby false claim of subsidy on fake manufacture of SSP. The assessee has shown the so-called purchases of Rock Phosphate from the following concerns relating to the above mentioned persons:- 1. Raj Minerals & Chemical Industries- Credit balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner has escaped assessment. It is not the case of the Department that M/s. Raj Minerals and Chemicals and M/s. Nandini Enterprises to whom Rock Phosphate was allegedly supplied by Sri Jugual Kishore Soni through fake bills had not purchased Rock Phosphate from any other person. The reasons recorded by the authority concerned has no nexus to form an opinion that the income of the petitioner has escaped assessment. No prudent person can draw an inference from the reasons recorded by the authority concerned that the income of the petitioner has escaped assessment. In view of the above, we find sufficient force in the writ petition. The writ petition succeeds and is allowed. The impugned notice issued under Section 148 of the Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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