2008 (10) TMI 428

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....ecide the Appeal. 2. Shri D.K. Dutta, learned Consultant appearing for the Appellants states that the Appellants obtained several inputs from a public sector company and physically mixed them to produce 'Thinners' from the year, 2002-2003 onwards. Initially, the Appellants were under the impression that since no manufacture is involved in producing the 'Thinners', the same is not excisable and therefore, the Appellants did not apply for Excise Registration, though they applied for registration as a Small-Scale Industrial Unit and also took both Sales Tax and Income Tax Registrations. He states that the Appellants have maintained the necessary books of accounts as well as the invoices under which the inputs were obtained. He further ....

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....,18,539.00 - 34,42,966.00 Nil. 2003-04 1.09,60,000.00 1,00,00,000.00 9.6% 9,60,000.00 N.A.   1,81,20,100.00 1,56,20,676.00 16% 24,99,324.00 N.A. TOTAL-II 2,90,80,100.00 2,56,20,776.00 - 34,59,324.00 Nil. 2004-05 1,09,60,000.00 1,00,00,000.00 9.6% 9,60,000.00 9,600.00   3,61,22,620.00 3,11,40,190.00 16% 49,82,430.00 49,824.00 TOTAL-III 4,70,82,620.00 4,11,40,190.00   59,42,430.00 59,424.00 2005-06 TOTAL-IV 2,60,82,432.00 2,24,84,855.00 16% 35,97,577.00 71,952.00 Grand Total 13,12,06,657.00 11,47,64,360.00 - 1,64,42,297.00 1,31,376.00 In the above Table, the assessable value....

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....bmissions from both sides, we find that since the Appellants do not have a net duty-liability even for the period after 9-9-05 when they have taken the Excise Registration, the explanation put forth by them that they had no mala fide motive in not reporting production and clearance earlier appears to be bona fide and plausible. Their submission in this regard is further strengthened by the fact that there is no duty demand for the period after 9-9-05, which goes to show that after allowing the small-scale exemption, which we find, has not been denied by the Department even while issuing the Show Cause Notice, the Appellants would not have any net duty-liability for the past period, i.e., from 2002-03 till 8-9-05, if the calculation submitte....