TMI Blog2014 (11) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... cise records as well as audited financial accounts and records of the assessee-company, which have been duly verified and accepted by the competent authorities from time to time not only for central excise but also for purposes of income tax etc. Decision of R.A. Casting was upheld by the Supreme Court [2011 (1) TMI 1302 - Supreme Court of India]. There is virtually no evidence produced by the Revenue as regards the clandestine manufacture and clearances of appellants final product. It is well settled law that the allegation of clandestine manufacture and removal are required to be proved by production of sufficient evidence in the shape of production of raw material, the actual manufacture of the goods, transportation of the same or in the shape of identification of the buyers. There is no statement of any persons indicating or admitting that income as reflected in the appellants balance sheet stand derived from clandestine activities of manufacture and clearance of their final products. Infact we find that where the excess income not even entered in the balance sheet so surrendered by an assessee to the income tax authorities, it stand held by various Courts that same cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... huge amounts of other income in their profit and loss account, the balance sheet of the appellant for the period 2003 to 2007 were scrutinized. From the same, Revenue entertained a view that the value adopted by the appellant for their final product was equivalent to the value of inputs and electricity expenses, thus leaving no room for other expenses like salary wages of workers, cost of consumables /stores, cost of maintenance etc. Further, the appellants were showing other income as sales commission, sharing trading and grain trading in their balance sheet, Revenue made further investigation and approached the persons, who gave the cheque on account of sales commission as also on share trading and grain trading. It seems that almost all the said persons accepted the fact of giving sales commission and share trading income to the appellant. However, the Revenue further approached the persons for whom the said activities made and they denied having known the appellant or having any direct dealing with the appellant. 4. On the above basis, Revenue entertained a view that the appellant was suppressing the value of their final product as also were indulging in clandestine clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the services from the appellant, their statements cannot be made the sole ground, for arriving at an adverse finding, without summoning the said persons for the purpose of cross examination. It was the appellants stand that there is no evidence on record showing the huge procurement of raw material required for manufacture of their final product, there is no evidence relating to the transport of said clandestinely cleared goods and there is no identification of the buyers etc. as also the receipt of consideration from them so as to establish the fact of clandestine activities. They in support of their pleas referred to various decisions of the Tribunal as also of High Courts. 7. Countering the arguments learned DR Shri Yashpal Sharma drew our attention to the finding of the adjudicating authority and submitted that the investigations conducted by the Revenue revealed that the entries made in the balance sheet were not genuine entries inasmuch as the persons for whom the appellants have acted as sales commission agent or the trader have refused to identify them. Shri Sharma though fairly agrees that though the persons who have given the cheque to the appellant as sales commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of R A Casting Pvt. Ltd. vs. CCE, Meerut I[2009 (237) ELT 674 (Tri) has dealt with an identical question. By referring to the Hon ble Gujarat High Court decision in the case of Arabian Express Line Ltd. vs. Union of India [1995 ITR 31, it stand held by the Tribunal that law does not entitle the Revenue to disregard all the statutory excise records as well as audited financial accounts and records of the assessee-company, which have been duly verified and accepted by the competent authorities from time to time not only for central excise but also for purposes of income tax etc. It was further held that the Central Excise authorities have no jurisdiction to examine or determine whether the share transaction of the assessee company are genuine or not and whether the income from share trading duly verified, accepted and assessed to income tax authorities could be disregarded by them so as to treat the same as proceeds of ingots alleged to have been clandestinely produced and sold by the appellants. The entire action of the Revenue was held to be without jurisdiction. The said decision of the Tribunal in the case of R A Casting P. Ltd. stand confirmed by the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
