Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Central Excise, Jaipur I Versus M/s. Man Serve Pharma And (Vice-Versa)

2017 (9) TMI 1057 - CESTAT NEW DELHI

Clandestine removal - Medicines - SSI exemption - The case of the Revenue is based on rough register maintained by Chemist Shri R A Singh - Held that: - the presumption taken by the revenue that such quantity has been produced is without any positive evidence - demand has been confirmed against the assessee based on Annexure D to the show cause notice which shows that entries made in the register as well as entries made in RG 1 register and difference thereof is demanded. - Revenue has faile .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also relied upon to allege clandestine clearance of goods by the assessee. the said statements cannot be relied upon in the absence of any corroborative evidence. - No other corroborative evidence has been produced by the Revenue to allege clandestine clearance of the goods - appeal dismissed - decided against Revenue. - Excise Appeal No.1364 & 1784 of 2011 - A/56402-56403/2017-SM[DB] - Dated:- 1-9-2017 - Shri Ashok Jindal, Member (Judicial) Shri G R Singh, DR, for the Appellant Revenue Shr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ll, M/s. Zymex Pharmaceuticals, M/s. Mangleshwar Pharma and residential premises of assessee. Their stocks was physically counted and it was found that there is shortage of manufactured medicines valued at ₹ 6,29,119/-. During the course of investigation, one register maintained by Shri Ram Anugrah Singh, Chemist was found in which he has made entries of raw material received for production and finished goods produced. Statement of Shri Sanjay Sharma, Computer operator, Shri Sudhir Natani, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce to allege clandestine clearance of goods is the register maintained by the Shri R A Singh, chemist wherein the entries mentioned as 'MSP' and 'MSP (P)'. Entries mentioned in record as regards 'MSP' were cleared against the invoices but entries mentioned as 'MSP(P)' goods were cleared without invoices. On the basis of these entries made as MSP(P), it was alleged that same has been cleared clandestinely and if same is included in the total turnover, then the val .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the learned Commissioner, who held that on the basis of said register also, the assessee is entitled for benefit of SSI exemption for the period 2004-2005 and 2007-2008 as total turn over remains within the exemption limit of SSI exemption Notification No.8/2003 dated 1.3.2003 if the clandestine clearance be taken in consideration. But for the period 2005-2006 and 2006-2007, he confirmed the demand to the tune of ₹ 36,42,502/-. Aggrieved from the order of confirmation of demand by learned .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion that Shri Sudhir Natani in his statement has submitted that the goods have been removed without payment of duty. This allegation is totally wrong and he has not admitted as such that the clearance without payment of duty but explained in detail giving reasons for clearance without payment of duty. He further explained that there was batch repeat and it reprocessing of rejected / defective goods. It is his submission that certain documents have been relied upon but these documents pertain 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

anufacture specific quantity of finished goods. But he has never admitted that such quantity of goods have been manufactured. Therefore, the said statement in toto cannot be relied upon. He also submits that the statement of Shri Ramswaroop Natani is only related to the period 2007-2008 and with regard to the statement of Shri Sudhir Natani, it is alleged that he has stated that whenever a sign of P is marked, medicines of that batches were cleared without payment of duty. It is his contention t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned by Chemist is a rough register and cannot be said that entries made against P are cleared clandestinely. There is no authenticity of the said register. To support this contention, he relied on the decision of CCE, Surat Vs. Tulsi Polymers Pvt. Ltd. [2009 (247) ELT 223 (Tri-Ahmd)]. 4. He further submitted that the learned Commissioner (Appeals) has given finding only on presumption basis as he has observed that I admit that although the MSP P challans and requisition slip for issue of raw mat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed 14.8.2007 but no investigation was conducted from Shri Shakeel Ahmed who was looking after the Central Excise record. He further submits that whole case is based upon assumption and presumption and there is no evidence on record with regard to clandestine clearance. He further submits that the sole statement of the Director /staff cannot establish the guilt of the assessee as burden lies on Revenue and is required to be discharged effectively. To support this contention, he relied on the deci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ide. 6. On the other hand, learned AR opposed the contention of the learned Counsel and submits that Shri R A Singh, Chemist was looking after the activity of manufacture of medicines. He was maintaining the production record with him and on the basis of production register, the case has been made out as part of the entries were entered in the statutory records. Moreover, during the course of investigation, various statements have been recorded and in his the statement, Shri Sudhir Natani has ad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

008. Therefore, the impugned order qua the said findings is to be set aside. 7. Heard both sides. Considered the submissions. 8. On careful consideration of the submissions made by both sides, I find that the assessee is engaged in manufacture and clearance of medicines and availed the benefit of SSI exemption for the goods manufactured by them in their own name and paying duty on the goods manufactured by them on behalf of others. The case of the Revenue is based on rough register maintained by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of any corroborative evidence to that effect, the said defence cannot be discarded. Moreover, the entries made by Shri R A Singh, it has been explained that from raw material of particular quantity specific quantity of finished goods can be manufactured but he nowhere admitted that such quantity has been manufactured or produced. Therefore, the presumption taken by the revenue that such quantity has been produced is without any positive evidence. Further, I find that demand has been confirmed a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ck and after reprocessing cleared without payment of duty - entered on 25.6.2005. Department has taken quantity of 15000 as suppressed production (b) Against the dated 03.2006, 40,000 Deparferte tablet, against batch No.907 were produced and in the RG-1 39,800 (after deducting the wastage) were entered and cleared on payment of duty. Out of these 10000 tablets received back and after reprocessing cleared without payment of duty - entered on 01.01.2007. Department has taken quantity of 10,000 as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

RUD-XXIII. (d) Against 18.4.2005 Piotuss syp 100 ml against batch No.469, in column Production as per production register 100 + 100 Ltr is written whereas in RG-1 entered 995 and suppressed production is 1000. Again on 26.7.2006 against batch No. 469, 100 Ltr 100 is written and 1000 shown as suppression. Firstly, there is a double i.e. on 18.4.2005 and 26.7.2006 entry and how it is possible that against 100 + 100 Ltr. in record shown 995 and 1000. These figures has been taken from RUD-XXI and R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of Tulsi Polymers Pvt. Ltd. (supra) wherein this Tribunal has held as under: 5. After considering the reasons adopted by Commissioner (Appeals), I note that the fact of clandestine removal is required to be established by production of sufficient records and the same cannot be based upon the entries made in a rough note book. As rightly considered by Commissioner (Appeals) there is no evidence on record corroborating the clandestine activities of the assessee. In view of the above, I find no r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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