TaxTMI 
TaxTMI 
2025 (4) TMI 2053
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....xpenses but this was withdrawal from bank account and the provisions of section 40A(3) would not attract. It was further submitted that the second addition was in respect of the cash deposit in the same bank account made u/s. 69A of the Act. It was a submission that these cash deposits are out of withdrawal of the cash from the bank account and as the cash deposit was out of cash withdrawal and shown in the cash book of the assessee, no addition is called for. The third addition made by the Assessing Officer was on account of suppression of turnover. It was a submission that the assessee has disclosed a turnover of Rs. 5,10,43,291/-. The Assessing Officer had divided the sales with the quantity of material used and the scrap along with the same and had arrived at a suppressed turnover of Rs. 9,58,52,928/-. It was the submission that the Assessing Officer treated the difference of Rs. 4,48,09,634/- as the suppressed turnover of the assessee. The Ld. AR drew our attention to pages 96 to 104 of the paper book which is the audit report done by the Central Excise & Service Tax Department in the case of the assessee which reads as follows: 4. It was the submission that no variation in....
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....that the assessee has sold the products ranging from Rs. 125.88 to Rs. 578.26 excluding duties and cess. Even after not depending in this figure, the Assessing Officer has adopted a rate of Rs. 100/- to arrive at the alleged suppressed turnover. As there is no suppression of turnover found even by the Excise audit nor on account of any variation in the stock book, the estimation of the suppressed turnover as done by the Assessing Officer by arithmetic jugglery stands deleted. 8. In the result, the appeal of the assessee is allowed. Order dictated and pronounced in the open court. ============= Document 1 OFFICE OF THE COMMISSIONER(AUDIT), CENTRAL EXCISE & SERVICE TAX HDQRS.CIRCLE-I, AUDIT COMMISSIONERATE, BHUBANESWAR. FAR No.Cir-I/Gr.4/CE/2016-17/ 13 Dated :- 30-12.2016 Part-I 1. Name of the Unit. M/s. Tuff Tubes (Orissa) Private Ltd., Plot No.1032, AT-Bagheiput, PO/PS-Jankia, Dist .- Khurda (Odisha), PIN-752020. 2. Central Excise Registration No. AADCT1045JXM001 3. Commissionerate/Division/Range in which it is located Bhubaneswar-I Commissionerate, Bhubaneswar Division, Khurda Range. 4. Product Manufactured PVC Pipes PVC Fittings Sol vent Cement 5.Chapte....
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.... CE- 2 V VRI10 The assessee has neither paid the amount nor furnished any reply yet. Show Cause Notice to be issued to recover the objected amount. by way of Undervaluation: Sale as per Audited Balance Sheet for the FYs 2014-15 to 2015-16 is shown as Rs.5,10,43,291/- & Rs.4,17,35,330/- respectively whereas sales figures as reflected in the'' ER-1s is Rs.5,03,76,400/- & Rs.4,15,02,731/- which includes Duty paid sales, Exempted Sales & as such sales during the period. Hence, difference of Rs.6,66,891/-^ &' ?Rs.2,32,599/- were noticed between the Transaction Value declared in the relevant ER-1 Returns vis-Ã -vis the total Operating income from the sale of goods. The Central Excise duty on the above said amount is calculated to be Rs. 1,11,177/- which is to be paid by the assessee as per provisions of Section 4 read with Section 11A, interest under Section 11AA and penalty under Section 11AC of the Central Excise Act, 1944. [Section 11A, 11AA & 11AC of the Central Excise Act, 1944] Details in Annexure- 'B' Interest Penalty 2. Suggestion for better compliance including systematic improvements and modifications in the legal arrangements. The assessee shoul....
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....to place the provisions of Rule 6 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. For the sake of convenience, hereinafter, the aforesaid Rules is referred as the Valuation Rules, 2000'. Rule 6. Where the excisable goods are sold in the circumstances specified in clause (a) of subsection (1) of Section 4 of the Central Excise Act except the circumstance Where the price is not the sole consideration of such doods shall be deemed to be the for sale, the value transaction value and the amount of money value of any additional consideration flowing directly or indirectly from the buyer to the assessee. Explanation1- For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or Payable, sna consideration flowing directly from the buyer to the' assessee in relation to sale of goods being valued and aggregated accordingly, namely : ....
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....atements. 3. As per the ER-Is submitted by the assessee, appropriate Excise duty ha been paid the on the Transaction Value, the Transaction Value declare the sale of Excisable goods. 4. salecies consideration received by the Assessee i relation to the sale/clearance of Excisable Goods, the same attracts th place the provisions of Rule 6 of the Central Excise Valuatio (Determination of Price of Excisable Goods) Rules, 2000. For the sake c Rules, 2000'. Rule 6. Where the excisable goods are sold in the circumstances specified in clause (a) of subsection (1) of Section 4 of the Central Excise Act except the circumstance where the price is not the sole be the aggregate of such transaction value and the amount of De we value of any additional consideration flowing directly or indirectly from the buyer to the assessee .. . Explanation1- For removal of doubts, it is hereby clarified that the services, where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the ....