TaxTMI 
TaxTMI 
1997 (5) TMI 186
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.... same was clearing goods on payment of appropriate duty. Appellant claims to have 27 dealers of whom 3 were in Bangalore city itself. The dispute in the appeal relates to the period from July 1982 to October 1983. On 1-6-1987 officers of Preventive Wing visited the factory and found from the books that appellant had raised debit notes on the 3 local dealers and collected a sum of Rs. 26,12,621.00 as handling and service charges. This was verified from the debit note register also. On the basis of debit notes, it was inferred that appellant had suppressed that real value of plywood in the price lists and paid duty on the reduced value and recovered differential value in the guise of handling and service charges on debit notes. Accordingly, a....
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....h the Collector could arrive at the conclusion that the handling and service charges covered by the debit notes were really not for post manufacturing activities but represented part of the price of the plywood cleared from the factory. The show cause notice refers only to the records of the appellant which merely show collection of handling and service charges under debit notes and the statement recorded from the manager of the appellant. The statement does not indicate that any significant question regarding extra amount had been put to the manager. However, it is pointed out that in the impugned order the Collector referred to certain circumstances relied on by the Income Tax Officer in the assessment order passed against one of the thre....