TaxTMI 
TaxTMI 
1999 (8) TMI 516
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 105/80 dated 19-6-1980 and even under Notification 77/83 dated 1-3-1983, it was less than Rs. 20,00,000. Adjudicating authorities took the value shown in Balance Sheet under head Plant and Machinery as the value for determining the cut off point for eligibility. The value of various items like value of jigs, moulds, dies, inspection gauges, inspection fee, electrical installations, generator, etc. are included in the Balance Sheet. Under Section 211 of the Companies Act, 1956, Balance Sheet of a company is required to be in the Form set out in Part-I of Schedule-VI. According to this Section, fixed assets should be shown by distinguishing as far as possible between expenditure upon goodwill, land, building, etc. The basic record, i.e., the Fixed Assets Register, always shows different assets separately, but for balance sheet these assets are clubbed together under the various headings. The adjudicating authorities should have gone through the fixed assets register in which expenditure on each asset is indicted and worked out the exact amount that has to be excluded from the total figure given in the Balance Sheet. The Chartered Accountant's certificate which indicates amount a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6-1980. It was contended that they have been regularly filing Balance Sheets and in fact, even refund was sanctioned to them after Asstt. Collector was satisfied that the value of Plant and Machinery does not exceed the cut off limit for exemption. 8. We do not find that these pleas have been adequately considered. In fact, non-consideration of the pleas recording value of Plant and Machinery and value of items which could be excluded was held as one of the reasons even at prima facie stage by the Tribunal for granting unconditional stay. 9. In view of this, we are of the view that matter would have to go back by way of remand. We, therefore, set aside the impugned orders and remand the matter to the adjudicating authority for a de novo decision after considering all the pleas and verifying the assets register to arrive at correct value of Plant and Machinery and pass de novo order after arriving at definite findings in record to pleas that may be taken by the appellants. Appellants would be at liberty to produce such additional evidence before the adjudicating authority as they consider would support their case. Sd/- (Shiben K. Dhar) Member (T) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontended by the appellants, the value of small items written off (shown at Sl. No. 2 in the Chart at Annexure A) are not to be included in the value of plant and machinery as these consist of micro meters, verniers, calipers, gauges, dial indicators, spring testers etc. which are not plant and machinery installed. Once the value of these items is excluded, then the value of plant and machinery for the period covered in both the appeals would be within the ceiling limit prescribed in the Notification, as seen from Sl. No. 1 of the Chart (Annexure A) and both the demands require to be set aside. 14. In addition to the merits of the claim of the appellants for the benefit of exemption under the Notification, they are also entitled to succeed on time bar. In E/Appeal No. 179/89-B1, the demand has been confirmed for the period from 1-4-1981 to 30-9-1985 while the show cause notice is dated 21-4-1986 (the show cause notice covered the period from 1-10-1980 to 30-9-1985 and the Principal Collector has held that the period prior to 31-3-1981 is beyond even five years and therefore, the demand for the period from 1-10-1980 to 31-3-1981 is time barred even applying the extended perio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....am) Member (J) YEARWISE BREAKUP OF PLANT & MACHINERY AS PER FIXED ASSETS REGISTER MAINTAINED AS PER THE COMPANIES ACT, 1956 & AUDITED BY STATUTORY AUDITORS AS ON 30TH JUNE OF FINANCIAL YEAR AS PER BALANCE SHEET S. NO. PARTICULARS OF ITEM 30-6-1981 30-6-1982 30-6-1983 30-6-1984 1 Plant and Machinery(Inclusive of freight and insurance etc.) 12.44 16.73 19.11 18.77 2 Small Valve items of instruments, gauges, Dies Patterns and items for Repairs completely written off 0.39 0.59 0.74 1.20 12.83 17.32 19.85 19.97 3 Inspection & Checking Instruments 3.35 3.35 3.84 4.37 4 Jigs, Fixtures, Dies, Moulds and Patterns 2.39 2.62 3.82 4.14 5 Generator Set 2.60 2.73 2.73 2.73 6 Electric Installation 0.67 0.67 0.67 0.71 7 Tube Well 0.09 0.09 0.09 0.09 8 Work Benches 0.36 0.36 0.36 0.36 9 Spares for Repairs etc. 0.82 0.85 0.85 0.85 TOTAL SHOWN IN BALANCE SHEET 23.11 27.99 32.21 33.22 AS ON 31ST MARCH AS PER C.A. CERTIFICATE S.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... P.S. Bedi emphasised that Central Board of Excise & Customs had issued instructions that certain items like jigs, moulds, etc., would not be taken into account while computing the value; that the appellants were only working under the instructions issued by Board while computing the investment in plant and machinery. He also contended that Additional Collector in the impugned order No. 55/89 dated 30-5-1989 had excluded the value of such items whereas Principal Collector, in the impugned order No. 99/88, dated 18-11-1988 had held otherwise. The learned SDR pointed out that Hon'ble Member (Tech.) was of the view that the pleas regarding the items of capital goods to be excluded and included while computing the value of plant and machinery had not been considered by the adjudicating authorities. He, therefore, submitted that the matters should be remanded to the adjudicating authority for examining the merits of the case. The learned consultant, on the other hand, submitted that the Tribunal had considered such a plea and come to the conclusion that both the demands require to be set aside. 17. I have considered the submissions of both the sides. Both Notification No. 105/80....