Whether rate-analysis showing contracted prices inclusive of 12% excise proves assessee collected excise and shifts onus to assessee

HC admitted the appeal and framed two substantial questions of law: whether rate-analysis showing contracted prices inclusive of excise at the effective full rate (12%) establishes that the assessee collected excise though duty was not separately shown in invoices; and whether, once the department proves the RA bills are inclusive of excise, the onus shifts to the assessee to prove that excise was not collected from customers. The appeal was admitted for determination of these legal issues.

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Appeal admitted on two substantial questions of law concerning treatment of excise duty in rate analysis (R.A.) statements and invoices. First: whether "evidence available from the rate analysis statement that contracted price was inclusive of excise duty at the effective full rate i.e. @ 12% in column No. 6" establishes that the assessee "has collected normal rate of duty i.e. @ 12% from their customers" despite central excise duty not being "separately shown in the invoices." Second: whether the onus shifts to the assessee to prove they "have not collected the excise duty from its customers" when the department proves that the R.A. bills of the assessee are "inclusive of excise duty." The questions target whether inclusion of duty in contracted price/R.A. bills constitutes prima facie proof of collection and whether that shifts evidentiary burden onto the assessee to disprove collection.

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