Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

CCE, Chandigarh Versus JSK Steel (Pvt.) Ltd.

Clandestine removal of goods - Held that: - No corroborative evidence has been produced by the Revenue to substantiate their charge - the evidences revealed by the Revenue are in the shape of entries in diaries of Sh. Apreash Ghosh and transporters register. These documents were never controverter with the respondents and these entries were never supported by any positive evidence, therefore, the Ld. Commissioner (Appeals) has rightly observed that these documents were not sufficient evidence to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g the payment of duty by clandestine removal of the goods manufactured by them. During the course of search, one small diary named as ledger book was recovered from Sh. Apreash Ghosh, an employee of the firm. In the follow up action an inquiry was caused with the transporters and resumed two registers maintained by them. The statement of transporter was recorded. On the basis of entries recorded in the transporter register and diary recovered from Sh. Apreash Ghosh, it was alleged that the appel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hat Sh. Jagdish Dogra has admitted that on the direction of the director, they have cleared the goods on the strength of parallel invoices and the transporter Sh. Munish Verma has confirmed the existence the chain of action resulting in clandestine removals of the goods. Further Sh. Munish Verma put his signature having seen read and admitted the removal of goods on parallel invoices. He further submitted that the Revenue is not required to complete the full chain of omission in the case of frau .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

efore me for consideration. Thereafter, follow up action was taken and in follow up action, the statement of the transporters has been recorded and some records have been seized from the transporters. On the basis of those documents as well as the private records recovered from Sh. Apreash Ghosh, it was alleged that the respondent was engaged in the activity of clandestine of removal of goods. No corroborative evidence has been produced by the Revenue to substantiate their charge and the Ld. Com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s had removed 96.620 MT + 12. 040 MT of the finished goods as shown in the transporter s registers (9 entries) and 277.950 MTs of the finished goods as shown in the diary/ledger book (27 entries) clandestinely without payment of Central Excise duty. The appellants have denied the charge of clandestine removals. They are contesting that the charge of clandestine removal is not proved by any positive corroborative evidence and the demand of duty could not be confirmed solely on the grounds of entr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stinely removed goods were sold. They submit that the transport s registers only mention the address of the appellant s factory and not the quantity of the goods removed. They also point out that they have submitted a reconciliation statement in respect of the alleged clandestine removals as detailed in annexure A and B to the show cause notice, before the adjudicating authority who had not considered the same on the ground of the dubious nature of working of the appellants. They are relying upo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n by any person that the quantities relating to the 27 entries had been removed without payment of duty. Similarly of quantity of 96.620 MT + 12.040 MT of the finished goods as per 9 entries figuring in the transport register of the transport company has been alleged to have been clandestinely removed. The transporters while explaining the entries contained in the said registers have not admitted that they have transported the goods from the appellants unit. The appellant while denying the alleg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

emand Clandestine removal Private note book maintained by a part time employee containing unauthenticated entries and over-writings not to be relied on the establishing clandestine removal in absence of any corroboration in the form of seizure of goods or invoice or purchase of raw materials etc. Section 11A of Central Excise Act, 1944 read with Rule 9(2) of Central Excise Rules, 1944. [1992 (60) E.L.T. 451 (Tribunal); 1991 (51) E.LT.. 377 (Tribunal); 1990 (49) E.L.T. 415 (Tribunal); 1990 (48) E .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be not a dependable record to establish clandestine removal unless the same supported by other evidence such as raw material consumed, goods actually manufactured and packed, etc. In the present case, the only piece of evidence is only the private note book maintained by Ram Subbu, a part time employee working for several other units. There is not other evidence in the form of seizure of clandestinely removed goods or invoice or purchase of raw materials, etc. to corroborate the entries. Therefo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ituated in the same compound and having a common trading agent. On a detailed examination of the evidences, the Tribunal set aside the order of the Commissioner, Central Excise by applying the ratio of earlier judgment rendered in similar match work cases as in the case of Premier Matches v. CCE [1991 (51) E.L.T. 377; Vasuki Match works v. CCE (1990 (49) E.L.T. 415]; and Sekhar Match Industries v. CCE [1990 (48) E.L.T. 599]. There are a number of similar cases on similar issue, which have come u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Ltd.v. CCE[1999 (113) E.L.T. 992] that entries made in the different material register maintained by the security staff at the factory gate is not conclusive evidence to sustain the charge of clandestine removal under Rule 9 of Central Excise Rules. In the case of Varun Processors Pvt. Ltd.v. CCE Chandigarh [1999 (30)RLT 533] it has been held that allegation based on packing slips recovered from factory and statement of their scribe is not sufficient material for holding the charge of allegatio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

It has been held that Rule does not say so nor is it capable of being so interpreted. It has been held that in a case like the one in question, where the accounts are found fabricated and untrue, the figures of raw material utilised or the particulars of labour employed may not be available. It is not the case of the appellant that even though acceptable material with respect to these factors was available, it was not considered. On that plea, the Apex Court rejected the appeal. However, we noti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

egister maintained by the security staff at the factory gate is not conclusive evidence to sustain the charge of clandestine removal unless the same is supported by other evidence such as raw material consumed, goods actually manufactured and packed, etc. 7. I have also perused the other case laws relied upon by the appellant in support of their contention that the charge of clandestine removal made out against them was not proved on the basis of entries of diary/cash ledger and transporter regi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sole entries made in the said issue notes Rules 9(2) and 173Q of Central Excise Rules, 1944. [para 15} Clandestine removal Motive Raw material purchased on payment of duty and modvat claimed Buyer of final product, majority of being Government of India Undertakings, insisting on payment of duty so as to claim Modvat credit No motive for assessee to indulge in clandestine removal Rules 9(2) and 173Q of Central Excise Rules, 1944. [para 15] Clandestine removal Evidence Private records Mere seizur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ner of Central Excise Madurai 2002 (145) ELT 616 (Tri. Chennai) passed the following judgment on the allegation of clandestine removal: Demand - Clandestine removal Proof Private not book in English allegedly showing clearance Scribe not examined Person maintaining records knowing only Tamil not admitting to contents of note book Cross-examination of partner of assessee firm and their submissions indicating that note book and entries therein did not pertain to or co-related to goods manufactured .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

facturing details, use of electricity, sale of goods and receipt of money has to be produced by Revenue Erstwhile Rules 9(2) and 173Q of Central Excise Rules, 1944. [para 9] 9. In the above judgment, the Hon ble Appellate Tribunal has held that Corroborative from evidence such as receipt of raw materials, manufacturing details, use of electricity, sale of goods and receipt of money were the essential evidence required to establish the case of clandestine removals. Similarly, in the case of Commi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

charge of clandestine removal. In the present case, the Commissioner has scrutinized the entries made in the note book and found that in the note book there are entries made with regard to goods cleared under the invoices and also with regard to amounts received from them. He has also noted that there is no deletion made in the note book in respect of goods despatched under proper invoices.[para 6] Clandestine removal Accounts, Records and Returns Private Parcel Note Book Evidence, Statement, cr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f erstwhile Central Excise Rules, 1944. In a circumstances like this, it is not possible to hold that Revenue has produced sufficient evidence with regard to manufacture and clearance of goods clandestinely. Revenue ought to have produced the evidence of purchase of raw material, manufacture and clearance of goods clandestinely by examining the workers and also those who have received the goods without payment of duty. [para 6] 10. In the above case, it was again held that Entries of despatches .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Forum: Input credit of gst paid on urd

Forum: 3B mistake

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

Forum: Excise duty credit on finished stock at additional place of business.

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version