TaxTMI 
TaxTMI 
2015 (2) TMI 629
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.... 2. The CIT(A) has erred in deleting disallowance by holding that the assessee has been granted exemption under the Excise Act and therefore no disallowance can be made under the provisions of the I.T. Act without any basis." 2. The Ld. AR pointed out that issue raised in the ground has been settled by the Hon'ble Jurisdictional Delhi High Court in the case of assessee itself vide judgment delivered on 18.2.2013 in WP (c) 1987 / 2012 and others. The Ld. AR referred para Nos. 9 & 10 of the said judgment, copy of which has been supplied. 3. Ld. DR on the other hand did not dispute the above submission made on behalf of the assesee but requested the bench that assessee should be directed to file excise record. 4. Having gone through t....
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....5. The Ld. CIT(A) has deleted the disallowance in question, on the basis that the AO did not appreciate the material and evidence furnished by the assessee to differentiate between the raw material and the articles or things manufactured by the unit in an industrial area. He has referred schedule 13 of the I.T. Act 1961 with this finding that serial No. 20 of the schedule talks about the articles or things or activity mentioned as "plastic and articles thereof" under the excise classification or heading nos. 39.09 to 39.15. As per him the legal interpretation is that the goods manufactured by the assessee fell under the heading nos. 3923.90 and 8414.99 of the excise classification. He has also observed that in the exemption certificate that....
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....facture of exempted goods. The said notification dated 10.6.2003 has exempted the goods specified in the first schedule and the second schedule to the Central Excise Tariff Act 1985 (5 of 1985) other than the goods specified in annexure - 1 appended thereto and cleared from a unit located in the industrial growth centre or industrial infrastructure centre or export promotion industrial park or industrial estate or industrial area etc. as the case may be specified in annexure II appended thereto and exempted from the whole of duty of excise of additional duty of excise. By virtue of the said notification dated 18.5.1995 waste and paring arising during the manufacture of exempted goods are exempted from the whole of duty of excise leviable th....
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.... issue raised in the grounds, is fully covered by the judgment dated 18.2.2013 (supra) of the Hon'ble Jurisdictional High Court in the case of the assessee itself the relevant para No. 8,9 and 10 thereof are being reproduced hereunder :- "8. The reasoning adopted in the two years for which the re-Opening is being sought after four years from the end of the relevant assessment year was that since the petitioner had answered 'Not Applicable' with regard to serial No. 14(ii)(e) of form 10CCB, the petitioner had failed to disclose full and true material facts necessary for his assessment. Apart from this, the learned counsel for the petitioner also drew our attention to the assessment order dated 29.3.2007 pertaining to the assessment year 2....
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....order rejecting the objections. However, we are inclined to agree with the WP(c) 1987/12, 2732/12, 2749/12 & 2733/2012 Page 7 of 9 submissions made by the learned counsel for the petitioner. The entire sub-stratum of the notices issued under section 148 of the said Act is that the petitioner's product namely PET bottles fall within the negative list stipulated in serial No. 20 of the 13th Schedule of the said Act. We have noted the arguments of the learned counsel for the petitioner that the product manufacturerred by them falls under 3923.30.90 of the Central Excise Classification which is not within the range of products specified in serial No. 20 of the 13^th schedule of the said Act, that is, within headings 39.09 to 39.15. Therefore cl....
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....o believe that income hade escaped assessment when the petitioner's product clearly does not fall within the negative list. Thus, in view of the established facts in this case, the assessing officer could not even have taken the prima facie view that there were reasons to believe that income had escaped assessment. Consequently, we feel that, in the facts and circumstances of this case, the issuance of notices under section 148 of the said Act was not warranted. The said notices are quashed and all proceedings pursuant thereto are also quashed." 6. It is pertinent to mention over here that the assessee had gone in the above cited writ petition before the Hon'ble Delhi High Court against the notices issued u/s 148 of the Act for the asses....