9911796707
TMI Blog2018 (7) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial accounts it was noticed that there is a difference in reporting income and the assessable value in the ER-1 returns for the year 2002-03, 2003-04 and 2004-05. It was concluded by the lower authorities that during the period in question, the appellant had not shown certain sale proceeds in the ER-1 returns. The show cause notice was issued for the demand of the differential duty on the difference between the sale proceeds recorded in the balance sheets and the assessable value in the ER- 1 returns on the ground that goods which were cleared from the factory premises merit classification under chapter heading 4408.40 as cuttings and trimmings of plywood. The show cause notice dated 04.05.2007 demanded duty interest and penalty. In de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show cause notice is that the sales income shown by the appellant in the balance sheets for the period in question are in respect of the clearances made of cuttings and trimmings, the show cause notice itself records that in respect of wastage of firewood and mango wood. He explained the procedure of manufacturing the plywood and submits that what has been cleared by them as wastage is not a plywood and it is only remaining of logs after the peeling activity is completed and cannot be equated with cuttings and trimmings of plywood. He would submit that this particular submission has been properly considered by the first appellate authority and the Order-in-Original was correctly set aside. He has also relied upon the decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and in the grounds of appeal. First issue to be decided is whether the sale of firewood or whatever reflected in the financial accounts is liability to duty as alleged by the Department. Except reproducing the description of goods under the heading 4408.40 of the Schedule to the Central Excise Tariff Act, 1985, there is no evidence put forth by the Department to classify the subject goods under the said classification. As discussed in the impugned order, description of goods as per cash memos is 'wooden rollers, left over rollers, firewood (end cuttings). As against this description, Department classifying the product under 4408.40 is without any basis and hence does not sustain. If we go through the manufacturing process also, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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