2015 (10) TMI 1048

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.... Facts: 2. For the financial year 2000-01, the assessee was assessed for turnover tax on 25-5-2002 and paid tax due. Thereafter the assessee received a show cause notice dated 24-11-2004 requiring it to appear on 29-11-2004 and show cause as to why an amount of Rs. 2,94,756/- should not be added to its turnover for the Assessment Year 2000-01 assessed on 25-5-2002 and additional tax thereon with statutory interest and penalty not be levied for the reason that the excise department had apparently found it liable for evasion of excise duty on an amount of Rs. 2,94,756/- for the financial year 2000-01. According to the show cause notice as the escaped amount vis-a-vis excise duty apparently constituted a part of the sale price of the goods....

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.... order dated 29-3-2006 passed by the Assessing Officer under Section 84 of the 1994 Act for levy of purported escaped turnover tax, interest thereon and penalty. 4. The department's second appeal to the Tax Board failed. Hence this revision petition. 5. Heard the officer in-charge and perused the impugned order dated 25-1-2010 passed by the Tax Board. Considered. 6. In the case of Girdhari Lal Nannelal vs. the Sales Tax Commissioner, MP: 1977 Vol. 39 STC 30] the Hon'ble Supreme Court has held that sales tax can only be levied on a sale transaction proved by the department for the burden in this regard lies on it. In the case at hand the department has not discharged the burden of proof to establish from any enquiry or other....

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....ge beyond manufacture, i.e. the sale of the article. Para 23 of the opinion of the Hon'ble Supreme Court is reproduced herein below:-     "On the other hand, excise duty is a levy on a taxable event of "manufacture" and it is calculated on the "value" of manufactured goods. Excise duty is not concerned with ownership or sale. The liability under the excise law is event based and irrespective of whether the goods are sold or captively consumed. Under the excise law, the liability is there even when the manufacturer is not the owner of raw material or finished goods (as in the case of job-workers). Excise duty, therefore, is independent of ownership [see Ujagar Prints (II) v. Union of India: (1989)3 SCC 488]. Therefore, ....