2015 (10) TMI 131

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....sidence of Shri Pawan Sharma, Director of the appellant company, was searched. In course of search of the factory, a diary/writing pad was found, which contained certain figures regarding sale. After examining diary entries and inquiry with the Directors of the appellant company, a show cause notice dated 19-1-2004 was issued to the appellant for demand of differential duty amounting to Rs. 88,25,182/- by denying the SSI exemption during the period from 1999 to January 2002 along with interest thereon under Section 11AB and also for imposition of penalty on the appellant company under Section 11AC and imposition of penalty under Rule 26 of the Central Excise Rules, 2002 on its Directors. The show cause notice was issued by alleging that ent....

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....n the diary recovered from the factory are ignored, there would not be any justification for denying the SSI exemption, as, if figures in the diary are not considered, the clearances of the goods by the appellant during each financial year would be within the threshold limit for the eligibility for the SSI exemption, that as is clear from the calculation at page-43 of the impugned order, the Commissioner has compared the total value of the clearances of the branded/unbranded goods as declared in RT-12 Returns during each year plus duty paid with the higher of the sales figures as declared by the appellant company during that period in the sales tax returns and the sales figures as per the diary entries during that period, and the duty had b....

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....f the two figures - sales value declared by the appellant during the financial year in the sales tax returns and the sales figures as per diary entries and has compared the higher of these two figures with the value of the sales figures including duty in the RT-12 Returns and, the duty has been demanded on the difference. Once the diary entries have not been found reliable, the Commissioner can compare only the sales value including duty as declared in the RT-Returns and the sales figures in the Sales Tax Return. Though there is some small difference in the sales figures declared in the Sales Tax Return and the figures declared in the RT-12 Return, according to the appellant, there are valid reasons for the same like the Sales Tax Return fi....