Best judgment assessment under Central Excise Rules upheld where factory closure left no records and the assessee sought that method.

Best judgment assessment under the Central Excise Rules was upheld where the assessee's factory had been closed and sold, relevant records were unavailable, and the assessee itself had sought such assessment. The contrary view that best judgment was impermissible because records were available did not fit the facts, as no records for the relevant period were produced. The precedent cited by the Revenue was treated as distinguishable. The appellate order was therefore set aside, and the assessment on best judgment basis was held valid.

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Issues: Whether the assessment finalised by the adjudicating authority on best judgment basis was sustainable when the assessee's factory had been closed, records were unavailable, and the assessee had sought such assessment.

Analysis: The dispute turned on the propriety of best judgment assessment under the Central Excise Rules when the assessee had no records because the factory had been closed and sold long before finalisation of assessment. The material showed that the assessee itself requested assessment on best judgment basis, and the adjudicating authority acted on that request. The contrary view of the lower appellate authority, that best judgment was impermissible where records were available, did not fit the facts, because no relevant records were produced for the impugned period and the precedents relied upon by the Revenue were distinguishable on that ground.

Conclusion: The best judgment assessment was valid and the impugned appellate order was set aside in favour of the assessee.

Ratio Decidendi: Where the assessee has no records due to closure of the factory and seeks assessment on best judgment basis, the adjudicating authority can lawfully finalise the assessment on that basis under the Central Excise Rules.

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