TaxTMI 
TaxTMI 
1998 (7) TMI 603
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....tins of talcum powder allowing redemption on payment of fine of Rs. 1,00,000 and Rs. 30,000 respectively with direction to pay duty on the same. 2. The dispute in this appeal relates to talcum powder said to have been manufactured by the appellant and cleared during the year 1986-87. Appellant was admittedly manufacturing talcum powder and clearing the same without payment of duty on the ostensible ground that the value of clearance did not exceed Rs. 5,00,000, the limit prescribed in the Notification 140/83. Investigation showed that the appellant had actually manufactured and cleared talcum powder of the value of Rs. 11,18,434.97 without paying duty. Show cause notice dated 23-7-1988 was issued referring to facts and evidence collec....
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.... as goods found lying in the premises of the appellants factory confirming the demand. He also imposed penalty. 4. The main contention raised by the learned Counsel for the appellant is that the assessable value determined as Rs. 11.18 Lakhs is inclusive of the value of talcum powder manufactured by Saloni Cosmetics with the brand name of the appellant and supplied to the brand name owner. Reference is made to pages 211 to 215 of the paper book containing copies of bills obtained by Saloni Cosmetics for empty tins purchased from M/s. Machine Spares, part of statement of K.M. Limdi, letters addressed by the appellant to the departmental officers prior to the issue of the show cause notice mentioning about the purchase of talcum powder ....
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....d that none of these bills contain any reference to anything required to be printed on the tins. When K.M. Limdi was questioned about this aspect he stated that he had given oral instructions to the supplier. This explanation, in our opinion, was rightly rejected by the Collector for two reasons. Printed matter including pictorial presentation could not have been a simple one which could be orally transmitted. It could have been transmitted only in writing or by a diagram. K.M. Limdi did not state that he had given any written diagram for this purpose. The bills do not indicate that the tins supplied were printed tins. 6. At pages 217 to 224 of the paper book are seen various pages of the production register said to have been maintain....
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....atement recorded on 3-6-1987 were not put to K.M. Limdi who was questioned only on 5-6-1987. While it is true that the enquiry officer could have confronted K.M. Limdi with the statement given by G.M. Kadapure, it would be open to him not to so confront K.M. Limdi. Principles of natural justice have been satisfied in the case by specific reference to the statement of G.N. Kadapure and the contents thereof in the show cause notice. It is not stated by the appellant that G.M. Kadapure had any motive for giving a false statement. We find that the aspects arising from the statement of G.M. Kadapure were put to K.M. Limdi when he was questioned and he gave answers. 7. At page 216 of the paper book is a copy of the declaration submitted by ....
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....ellant and no part of it was manufactured and cleared by Saloni Cosmetics. 9. The next contention relates to refusal of the Collector to allow deduction for sales tax paid by the appellant. The Collector declined deduction on the ground that the appellant at the relevant time was enjoying the benefit of exemption from payment of sales tax for a period of five years. Correctness of this factual position is not challenged in the Memorandum of Appeal. We therefore find that the stand taken by the Collector was justified. 10. The next contention relates to admissibility to deduction of "discount". Appellant provided no basis or particulars of so-called discount and it appears to us that the claim was rightly rejected. 11. Acco....