2007 (3) TMI 21

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....the goods at a very low value by showing fictitious factory gate sales, though they were actually transferring their goods to godowns at Bhiwandi from which actual sales took place at a higher value. During the search of the respondent- transport company, yarn belonging to the assessee was found stored in their godowns for which the relevant documents evidencing payment of duty could not be produced and therefore, the material was seized. The allegation of the Revenue was that, PTY was cleared in the name of bogus buyers and these goods were transported to the godowns of main transporters at Bhiwandi and stored there. Later on, they were sold to actual buyers at a higher price than the price at which they were cleared from the factory. The ....

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....rate the price difference in invoices, though it was stated in the show cause notice that the sales were effected from the depots at higher prices It was also held that no effort was made to cross check the money realization against the sales effected vis-a-vis the prices shown on the invoices before discarding the invoice price and rushing to price determination under the residual Rule 7 of the Valuation Rules. 4. The learned authorized representative for the appellant-Revenue has strongly contended that there was ample evidence to show that the excisable goods PTY were cleared in the names of bogus buyers and transported to Bhiwandi from where the actual sales at higher prices took place. It was submitted that the summons issued to the....

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....he price at the time of removal from the factory gate. The two brokers Jyanatibhai and Bhanuhai in their statements had stated that the buyers who were weavers could come to their office and after negotiating the price with the manufacturer, the price would be conveyed to them and if agreed by these buyers, the orders could be placed on the manufacturer and after confirmation, the delivery was directly made by the manufacturer to the buyers. This explains why the names were not personally known to the manufacturer and they would write the names given to them by the brokers in the invoices while dispatching the goods. Such a practice cannot make the invoices bogus, because the customers did exist, though their names were forwarded by the bro....