TaxTMI 
TaxTMI 
2023 (3) TMI 433
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....income tax department in the premises of the appellant wherein the appellant accepted certain variation in raw material scrap and stock value that while the appellant was in the process of finalizing their accounts. Certain working paper was noted by the IT department which include two Trial balances both up to 04.03.2008 having different working values for, inter alia, raw material as well as scrap. That since two separate values were recorded in such Trial balances for stock of scrap and raw material that the IT authorities made the appellant to pay income tax on the difference between the two values. The appellant had admittedly recorded the stock of Raw material as well as scrap in their records. The case of the Department is that the s....
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....raw material stock and 310 tons of Scrap is hardly 0.6 % ( for raw material) and 0.21% (of scrap) respectively of the total material received by them which difference is too negligible as compared to the volume of the work undertaken in the fact. In support of his submission he placed reliance on the following judgments: * RAVI FOODS PVT.LTD -2011 (266) E.L.T. 399 (Tri. - Bang) * ZOLOTO INDUSTRIES- 2013 (294) E.L.T. 455 (Tri. - Del) * SAINI INDUSTRIES LTD-2014 (304) E.L.T. 282 (Tri. - Del.) * CHETAK MARMO PVT. LTD. -2015 (325) E.L.T. 150 (Tri. - Del.) * SUPREME CYLINDERS LTD.-2016 (332) E.L.T. 373 (Tri. - Del.) * ARISUDANA INDUSTRIES LTD. -2016 (339) E.L.T. 258 (Tri. Chan.) * IOC Ltd. V/s. CCE- 2003(158) ELT 49(Tri-Kolkata) ....
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....h case, there cannot be any case of clandestine removal. The department has demanded duty assuming that goods have been cleared clandestinely is without any basis. Even, the accounting made by the appellant on the instance of IT Search does not show that the goods have been cleared clandestinely. The difference which was pointed out by the income tax department is very negligible i.e. raw material 0.6 % and scrap of 0.21% against the total raw material and scrap dealt by the appellant. For this reason also it cannot be assumed that the goods have been cleared clandestinely. As regard the reliance placed on the IT search, it is settled law that on the basis of Income Tax demand of Central Excise Duty cannot be confirmed without independent i....
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.... the absence of corroborative evidence, hence, no duty of excise can be confirmed. 4.4 In the case of CHETAK MARMO PVT. LTD.(Supra) this tribunal held that it is a well settled law that clandestine removal ought to be established by production positive evidence in absence of any other evidence on record, some discloser and surrender of income before Income Tax Authorities especially when assessee pleading also undertaking other activities of generation of income not to be held to the sufficient evidence to uphold finding of clandestine activities in absence of procurement of raw material, the actual manufacture of goods and non identity of transporter and customer etc. 4.5 In the case of SUPREME CYLINDERS LTD (Supra) the assessee has paid....