2018 (6) TMI 1551 - AT - Central Excise

Demand of duty - income surrendered with the Income Tax Authorities has been considered as turnover - Held that - Considering the fact that the income surrendered with the Income Tax Department cannot be considered as income or turnover of goods manufactured by the appellant in the absence of any evidence placed on record that the said income or turnover is on account of the goods manufactured by the assessee. As the Revenue has failed to come with evidence that the said amount surrendered with the Income Tax Department is on account of clandestine removal of goods. In that circumstances, demand against the appellant cannot be confirmed - appeal allowed - decided in favor of appellant.

Summary

The appellant appealed against an order where surrendered income was considered as turnover, leading to duty demand. The Tribunal found no evidence linking the surrendered income to goods manufactured by the appellant, thus setting aside the demand. The appeal was allowed with consequential relief.