TaxTMI 
TaxTMI 
2019 (8) TMI 1519
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....g of biscuits. It had purchased 4,140 bags of sugar, being the old stock from the period 1994-95 and 1995-96, at an auction conducted by the Bihar State Sugar Corporation in February, 2001. Acting upon some information, the Central Excise Officers had conducted search and seizure at the Appellant's factory, office premises and one godown on 21.01.2009. 2.1 875 bags of sugar were found stored in the said godown at Simli Sahadra, Patna City, which were seized. A total quantity of 57,621.95 kgs. biscuits, including 8,948.50 kgs. of "Parel-G" (incorrectly noted as Parle-G at certain places in the impugned Order) brand biscuits, was seized from the Appellant's factory. Additionally, 70 bags of sugar, 326 bags of maida and two drums of soya lecithin were also found and seized. An inventory was prepared in respect of the aforesaid goods, which were subsequently provisionally released. 2.2 A large number of books and records were recovered from the Appellant's office and statements of various persons were recorded. 3. The Revenue was of the opinion that the Appellant had used 3,265 bags of unaccounted sugar, of which 875 bags had been seized and subsequently provisionally released, in th....
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....ufacture and no evidence establishing any link such as unaccounted procurement of maida, salt ammonia flavours, transportation of clandestinely manufactured biscuits, receipt of sale proceeds of biscuits purportedly valued at Rs. 5,45,25,427/- etc. 4.1 It was further submitted that the Appellant had only one baking oven in its factory which was, at best, capable of manufacturing 1600 to 2000 kgs. biscuits per day, a sharp contrast with the figure of 22,000 kg production on daily basis required for sustaining the allegations. Insofar as the allegations concerning Parel-G biscuits were concerned, it was the Appellant's case that it had purchased the same for trading purposes from M/s Maruti Foods, Raipur. Such purchase had been duly accounted for and disclosed truthfully by the Appellant during the course of investigations. 5. Vide Adjudication Order dated 27.11.2002, the demands proposed in the Show Cause Notice were dropped. Aggrieved by the order, the Department filed an appeal before this Tribunal, following which the appellant filed its cross objection. The same were disposed of vide a Final Order No.A-379/KOL/08 dated 28.03.2008 passed by this Tribunal remanding the matter fo....
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....did not possess the physical infrastructure to manufacture 22,000 kgs of biscuits on a daily basis for 4 to 6 months. The Appellant had maintained separate Books of Accounts for its Mishri Division, wherein all purchases of old stock of sugar, wastage, yield etc. had been recorded. The veracity of the entries made in the said Books of Accounts have not been disputed. 6.4 It was also submitted that the Appellant had been assessed to sales tax vide a Sales Tax Assessment Order finalized on 01.03.2008, which proved that the Appellant had manufactured and sold mishri. The said Assessment Order had been passed after due verification of the Appellant's mishri sales and had attained finality. The figures reflected therein tallied with those appearing in the Appellant's record pertaining to Mishri Division for 2001-02. It was irrelevant that mishri sales had not been declared in the periodic sales tax returns since mishri was, admittedly, an exempt item under sales tax. 6.5 The Appellant's explanation regarding purchase of Parel-G biscuits from M/s Maluti Foods had been corroborated by the latter's proprietor, Sri K. K. Khetan in his statement recorded during the course of investigation.....
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....round 22,000 kgs biscuits everyday for 4 to 6 months, which would have been the case had the Department's allegations been true and correct. As observed by us before, there is also no evidence against the appellant that it had transported unaccounted stock of biscuits or that it had received undisclosed sale proceeds exceeding Rs. 5 crores. 9.4 The Certificate of supplier of the baking oven installed in the appellant's factory clearly stated that the said baking oven had the capacity of manufacturing upto 200 kgs. of biscuits per hour only. It can be logically deduced therefrom that the appellant's factory was never equipped with the machinery, infrastructure etc. commensurate with the charge of clandestinely manufacturing 22,000 kgs. biscuits everyday for 4 to 6 months. We find that that the consumption of electricity was also in consonance with the Appellant's stated figure of 1,600-2,000 kgs. daily biscuit production. 9.5 We find that the Sales Tax Assessment Order finalized on 01.03.2008 had been passed after acceptance of the Appellant's Books of Accounts and due verification of its mishri sales. The relevant figures shown in the said assessment order tallied with those appe....