TaxTMI 
TaxTMI 
2024 (11) TMI 126
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....(i) Whether the assessment of excise duty and further levy of interest and penalty are sustainable since there is absolutely no evidence of a manufacture of excisable goods by the appellant herein? (ii) Whether the proceedings could have been initiated based on the 'registers and loose sheets' recovered from the premises of the appellant without corroboration of the manufacture done and the clearance effected of excisable goods?" 2. Learned Counsel appearing for the appellant contended that the proceedings initiated were based on loose sheets of papers as recovered on an inspection and there was absolutely nothing to evidence manufacture of goods which had escaped levy of excise duty on its clearance. It is pointed out that the facts o....
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....ese were the grounds on which the penalty was imposed. 5. The two questions of law framed are mixed questions of law and fact. The questions of law were also framed on the ground taken by the assessee that there was no evidence regarding the manufacture of excisable goods by the appellant and the proceedings were based only on registers and loose sheets which cannot lead to imposition of penalty without anything substantiating manufacture. We are justified in framing the questions of law, as would be clear from the decision relied on by the petitioners in Hero Vinoth (Minor) Vs. Seshammal reported in (2006) 5 SCC 545, from which paragraph no. 24 (iii) is extracted:- "24(i)------------------------------------------------- (ii)---------....
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....r weighment done, presence of raw material in excess of that declared in the invoice was found. In addition to this was the allegation of manufacture based on the documents recovered from the premises of the appellant on inspection. 7. Insofar as the excess of 3.280 Metric Tonnes of Forged Steel Grinding Media Balls; the same was detected on proper stock verification conducted in the presence of two employees of the appellant. The stock verification report was the basis of the allegation so levelled of excess stock found. 8. Insofar as the excess raw materials found, two trucks bearing registration no. BPL-6955 and BEW-6955 were found standing at the gate of the appellant. The drivers, on demand, produced two invoices bearing serial no. 2....
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....ral Manager of the appellant indicated such job work having been conducted. One of the Directors of the appellant was found to be the Director also of M/s Bihar Foundry & Casting Ltd. 10. With respect to the clearance of excisable goods without payment of duty, the records recovered from the premises of the appellant on inspection was relied on specifically in paragraph no. 10 of the show cause notice. The calculation chart was also annexed as Annexure-XXI along with the show cause notice. 11. The Tribunal had clearly found from the adjudication order that the register recovered from the appellant's premises contained full details regarding the activities of the appellant including attendance of labourers, shifts-run, quantity of LDO cons....
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....upra) was a case in which some loose papers were recovered from the dustbin of the premises of the manufacturer. It was found that the manufacturer assessee had received some consignments of betel-nuts which were not entered in the stock register maintained; specifically four numbers of consignments. A clean chit was given to the assessee with respect to two consignments finding no actual purchase having been made by the manufacturer of the raw materials. With respect to the other two consignments, it was found that betel-nut was received by the manufacturer which was the main material for manufacture of Pan Masala. A Division Bench of this Court found that the charge of clandestine manufacture and surreptitious removal of finished final pr....