TaxTMI 
TaxTMI 
2016 (6) TMI 867
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....e sale outlet premises and also the sweet meat manufacturing factory at Narayanaguda on 04-03-2009. The officers noticed that appellants were manufacturing dutiable goods like cookies biscuits, pastries and cakes and were clearing these goods without payment of duty and without obtaining Central Excise registration. On reasonable belief that the goods viz. Cookies, biscuits, pastries and cakes etc. were chargeable to duty, the officers resumed certain documents and records along with computer print outs for the period 01-01-2008 to 03-03-2009. Four numbers of computer hard disk were also recovered on 05-03-2009 and the same were sent to Government Examiner of questioned documents, for analysis. The statement of Sri Rajesh Dadu, Managing Par....
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....hod . The appellant is a maker of sweets/biscuits/pastries. Sweets, though excisable are exempted from duty. Biscuits/pastries are dutiable and attract duty on MRP basis. The appellant was not aware of this and therefore did not pay duty on these goods. The Anti-Evasion Officers of the Revenue searched the premises of the appellant and recovered records including copies of bills and computer hard disk. Based on such documents, the officers arrived at the value of the dutiable product. The appellant under pressure was made to give statement to the officers. He deposed the value of the dutiable goods cleared for the period 2007-08 and 2008-09 to be Rs. 18 lakhs and Rs. 24 lakhs respectively. The appellant then voluntarily paid the duty and in....
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.... of appeal and submissions made by the appellant. After perusal of such comments the Commissioner (Appeals) has upheld the demand. The appellants have been in the business for fairly long time as is reflected from their VAT registration and returns. However, they did not obtain Central Excise Registration and did not file any declaration, though their sales turnover crossed the exemption limits provided for SSI units. The fact of evasion came to notice only during the detailed investigation by the department. Therefore, there is deliberate suppression and violation on the part of the appellant with an intent to evade payment of duty. The invocation of extended period by the adjudicating authority is correct. The appellant failed to furnish ....
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....ends would reflect the manner in which the demand was arrived. The relevant portion is reproduced as under: "(i) The assessees have not maintained any records with regard to the inputs and the finished goods viz. cookies/biscuits, cakes and pastries. They have submitted sales figures for the period 01-01-2008 to 05-03-2009 for their Secunderabad outlet ie. Covering a period of fourteen months. They have also submitted sales figures for the period 28-12-2008 to 10-01-2009 for their Hyderabad outlet ie. Covering a period of fourteen days only. It is felt logical to proceed by the best judgment method of calculation ie. By arriving at the nearly correct value of sales figure by taking into account the actual data available on record a....
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....ales value of all dutiable goods to be Rs. 18. lakhs and 24 lakhs for the years 2007-08 and 2008-09 respectively. The monthly returns submitted by the appellant to the Commercial Taxes Department showed a total turnover declared by the appellants for the purpose of VAT payment to be Rs. 8.06 crores and Rs. 10.31 crore for the years 2007-08, 2008-09 respectively. It has to be seen that this turnover will include sweets, which are exempted from payment of duty. Thus, though the adjudicating authority has used the words best judgment method for calculation of the duty demand in effect, he has placed reliance on the VAT returns and other documents available. In the Order-in-Original, it is stated as under: "That In the instant case , t....
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....and based on collateral evidences. The burden will be on the assessee to provide information for appropriation " The officers thus rejected the sale values provided by M/s Dadu in his statement, as no calculation sheet/basis for arriving at the sale values was given by him. The appellant has contested the method of arriving the demand by contending that best judgment method is for provisional assessment under Rule 7 of Central Excise Rules, when assessable value is not known, but not when the quantity of goods cleared is not known. When there was no data to arrive at the actual clearances made, the department has adopted the method best possible which may include a little guess work. Therefore, I cannot accept the argument of the learned....