AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 352
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....justified it and stated that they received advances from their customers to get manufacture of "Gravures Cylinders" as these "Gravures Cylinders" are required for printing of pouches/ rolls as per specification of the Customers. Since it appeared to the department that the Appellant has received additional considerations from their customers in the guise of advance security (Deposited by the Customers with the appellant for Gravures Cylinders) and has evaded Central Excise duty therefore a Show Cause Notice dated 21.10.2007 was issued to the Appellant by invoking extended period, as to why: (i) CENTRAL EXCISE duty amounting to Rs. 57,667/- (31,710/- + 25,957/-) and Edu. Cess amounting to Rs. 1,153/-(634/- + 519/-) total Rs. 58,820/- should not be recovered alongwith interest from the assessee under the provisions of Section 11 A and 11 AB of the Central Excise Act, 1944. (ii) Penalty should not be imposed upon them under the provisions of Rule 25 of Central Excise Rules, 2002 read with provisions of Section 11 AC of the Central Excise Act, 1944 for contravention of the provisions of Rule 6 & 8 of Central Excise Rules, 2002. 3. The adjudicating authority vide order-in-original da....
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....-CE dated 01/03/2003 (SSI exemption). The value of clearances of the assessee during the year 2003-04 remains less than Rs. one crore, therefore, after inclusion of Rs. 9,626/-, the value of clearances for the year 2003-04 remains less than Rs. One crore. Thus, there is no duty liability during the year 2003-04. (c) Out of Rs. 5,07,282/- an amount of Rs. 2,31,046/- related from those customers who had not got manufactured goods from the assessee after March, 2005 or the assessee did not sale any goods after March, 2005 to such customers. During the year 2004-05, their value of clearances was Rs. 99,67,144/- (without any tax). Thus the amount of Rs. 2,31,046/- is liable to be included in the value of clearances of the year 2004-05. During the year 2004-05, their value of clearances was Rs. 99,67,144/- (without any tax) and after inclusion of Rs. 2,31,046/- the value of clearances comes Rs. 1,01,98,190/-. The assessee availed benefit of notification NO. 8/2003-CE dated 01/03/2003 (SSI exemption). After given benefit of nil duty up to value of clearance of Rs. One crore, value of clearances of Rs. 1,98,190/- is liable to levy of central excise duty @ 16% i.e. Rs. 31,710/- and Edu. Ce....
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....e and send it to the Collector of the district in which such person resides or conducts his business and the said Collector, on receipt of such certificate, shall proceed to recover from the said person the amount specified therein as if it were an arrear of land revenue : Provided that where the person (hereinafter referred to as predecessor) from whom the duty or any other sums of any kind, as specified in this section, is recoverable or due, transfers or otherwise disposes of his business or trade in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached and sold by such officer empowered by the Central Board of Excise and Customs, after obtaining written approval from the Principal Commissioner of Central Excise or Commissioner of Central Excise, for the purposes of recovering such duty or other sums recoverable or due from such predecessor at the time of such transfer or otherwise disposal or ch....
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....ise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, for any reason other than the reason of fraud or collusion or any wilful mis-statement or suppression of facts or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (10) of section 11A shall also be liable to pay a penalty not exceeding ten per cent. of the duty so determined or rupees five thousand, whichever is higher : Provided that where such duty and interest payable under section 11AA is paid either before the issue of show cause notice or within thirty days of issue of show cause notice, no penalty shall be payable by the person liable to pay duty or the person who has paid the duty and all proceedings in respect of said duty and interest shall be deemed to be concluded; (b) where any duty as determined under sub-section (10) of section 11A and the interest payable thereon under section 11AA in respect of transactions referred to in clause (a) is paid within thirty days of the date of communication of the order of the Central Excise Officer....
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....le under section 11AA shall stand modified accordingly and after taking into account the amount of duty of excise so modified, the person who is liable to pay duty as determined under sub-section (10) of section 11A shall also be liable to pay such amount of penalty and interest so modified. (3) Where the amount of duty or penalty is increased by the appellate authority or tribunal or court over the amount determined under sub-section (10) of section 11A by the Central Excise Officer, the time within which the interest and the reduced penalty is payable under clause (b) or clause (e) of sub-section (1) in relation to such increased amount of duty shall be counted from the date of the order of the appellate authority or tribunal or court. Explanation 1. - For the removal of doubts, it is hereby declared that- (i) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where no show cause notice has been issued before the date on which the Finance Bill, 2015 receives the assent of the President shall be governed by the provisions of section 11AC as amended by the Finance Act, 2015; (ii) any case of non-levy, short-levy, non-payment, short-payment or e....
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.... any statutory provision with intention of evade tax. The department has to establish with supporting evidence, the existence of factors indicating willful mis-statement / suppression of facts. It should be positive act of the Appellant. The ld. Advocate for the appellant submitted that particulars which form basis of demand, were all maintained and recorded in books of the Appellant. He further submitted, without admitting, that there can be short payment of duty, if any, but that was not by reason of any fraud, collusion or willful mis-statement or suppression of facts with intention to evade payment of duty. It was on account of bonafide belief of the Appellant that the duty was not payable on such value. 8. He further stated that the non-collection of duty from the customers also supported the bonafide belief. The entire dealings are on records and the payments they have made and received are through banking channel only. He further submitted that the clearance had taken place under cover of Central Excise invoices which were duly entered in the Central Excise records and therefore intention to evade payment of duty is not establish. The learned Advocate for the Appellant brou....