TaxTMI 
TaxTMI 
2019 (8) TMI 1682
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....by the Commissioner of Central Excise and Service Tax. 2. Briefly stated the facts of the case are that the Appellant No. 1 is engaged in the manufacture and sale of plastic moulded furniture from its only factory at Jongleur, Howrah, duly registered with the Central Excise Authorities. The Appellant No. 1 is a part of the Uma Group which comprises of 9 Companies and 6 individuals. 3. Proceedings were initiated against the Appellant No. 1, by a Show-cause Notice dated 14 August 2015 alleging clandestine manufacture and clearance of excisable goods worth Rs. 30.97 Crores during the period 2010 - 11 to 2014 - 15. The basis of the allegation, as disclosed in the Notice is the information shared by the Income Tax Department pursuant to a ....
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....d not ipso fact lead to the conclusion that such suppressed sales were the result of clandestine manufacture in the absence of any corroborative evidence by the central excise authorities. Reliance in support of the said contention has been placed upon the following decisions: • Commr. Of Income Tax, Trichy vs Amman Steel & Allied Industries [2015 (330) E.L.T. 130 (Mad.)] • Ravi Foods Pvt. Ltd. vs CCE., Hyderabad [2011 (266) E.L.T. 399 (Tri. - Bang.)] • CCE., Ludhiana vs Zoloto Industries [2013 (294) ELT 455 (Tri. Del.)] • Chetak Marmo Pvt. Ltd. vs CCE. & ST. Jaipur-II [2015 (325) ELT 150 (Tri. - Del.)] • M/s NR Agarwal Industries Ltd., vs CCE & ST, Surat-I [2018 (10) TMI 1461....
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....rores attributable to the alleged suppressed sale of Rs. 30.97 Crores was included in framing the assessment of M/s. Swagath Plastic Limited for the year 2010-11 to 2014-15 (d) The party wise sales summary contained in the unnamed loose sheets for the period 2010-11 to 2014-15 is lower than the turnover of the Appellant as per the Audited Books of Accounts for the corresponding period, as evident from the table below: Year Turnover (Rs.) (Rs.) Party wise (as per page - 59 & 60 of UP/4) Audited Accounts Difference 2010-11 16,69,82,891 23,38,01,144 6,68,18,253 2011-12 21,84,87,831 19,74,34,782 -2,10,53,049 2012-13 20,21,80,564 26,76,85,614 6,55,05,050....
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....r, in the instant case, the department has proceeded to confirm the charge of clandestine manufacture and clearance solely on the basis of inputs received from the Income Tax Department, without collating any independent evidence in support thereof. 5. Heard both sides and perused the appeal records. 6. We find that the allegation of clandestine manufacture and clearance against the Appellant No. 1, in the instant case, is inspired by the survey conducted by Income Tax Department in respect of the Uma Group, inter alia, leading to recovery of 3 loose sheets identified as page 58 - 60/UPL 4 from the office premises of the Appellant No. 1. The provisions of the Central Excise law and the Income tax law are radically different and taxabi....
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.... clandestine manufacture of final product, it cannot be said that there was clandestine removal of goods for the purposes of Central Excise Law merely based on information received from the income tax department regarding admission by the assessee of any undisclosed income/suppressed sales. Similar view has also been taken by the Tribunal in Zoloto Industries case and Chetak Marmo Pvt. Ltd. case. Therefore, we are inclined to follow the same. 8. We are also in agreement with the contentions of the learned A/R that the charge of clandestine manufacture and clearance being a serious charge cannot be based on assumptions and presumptions as held in the various aurthorities referred at para 2.3 (e) above, whereas the Notice in the instant ca....