TaxTMI 
TaxTMI 
2004 (1) TMI 136
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....tion 11AB at appropriate rate. Ld. Commissioner (Appeals) has not found any evidence that there is a clearance of beedies which are non-duty paid and therefore he has held that the order passed by the original authority on the appellant is not sustainable and has set aside the order of imposition of penalty on them. 2. Revenue has come in appeal against this impugned order on the ground that on the basis of the admission statement given by Shri Yesuvadiyan, Proprietor of M/s. VBW to the effect that the unaccounted 4,980 kgs. of tobacco biris was used in the manufacture of biris and such biris were cleared without payment of duty and the buyer's statement to the effect that no bills/invoices were given by VBW for biris supplied to them or t....
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....outs of the company, but used to raise the bill for the consignment in the name of the company as told by the purchaser. Therefore, the Commissioner (Appeals) had erred in accepting such a belated explanation given by the supplier of tobacco biris especially when their statement dated 3-6-1997 containing the details of supply of tobacco biris is the vital basis for the case. It is also one of the ground of the Revenue that the Commissioner (Appeals) has failed to take note of the fact that M/s. Kerala Trading Company had raised a credit bill No. 121, dated 28-3-1996 on M/s. Valan Beedi Works and the raw material covered under the said bill had been accounted in their Form IV Register. Revenue further submitted that the Commissioner (Appeals....
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....p; In the statement recorded from Shri Yesuvadiyan on 29-4-1997 he has admitted that he has manufactured and sold biris in loose quantities or unpacked form. Shri Yesuvadiyan is a registered manufacturer of branded biris. Brand loyalty is an important factor in the marketing of goods and especially smokers are known to be notoriously brand loyal. To cater to their exclusive clientele, therefore, the biris must be connected with the particular manufacturer. It is consequently not possible to release biris without any brand name into the market and expect it reach the target consumers. The biris cleared by Shri Yesuvadiyan should, even in a loose or unpacked form have carried some indication of the brand. The bir....
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....ll evidencing purchase of the raw material, the manufacture of the branded beedies and sale of such branded beedies to even a single person in the market. He further submitted that branded beedies have been cleared after payment of duty and the non-branded beedies on which there is no Central Excise duty have also been cleared without payment of duty. He further stated that out of 1 kg. of tobacco biris 5000 beedies are manufactured and he has not admitted that 2,49,00,000 numbers of beedies are manufactured out of 4,980 kgs. of tobacco and cleared without payment of duty. He therefore submitted that branded beedies have been cleared after payment of duty and therefore the order of the ld. Commissioner (Appeals) is required to be sustained ....