2017 (10) TMI 501 - HC - Central Excise

Whether the Tribunal is correct in law when the significant document submitted by the assessee corroborated by the conformational statements of the assessee are overlooked and ignored? - Held that - It can be seen that the entire issue is based on appreciation of evidence of record and essentially one of facts. No question of law arises - appeal dismissed - decided against Revenue.

Summary

Issues involved:
Challenge to judgment of CESTAT regarding input-output ratio of goods manufactured on jobwork basis.

Analysis:
The Department filed an appeal challenging the CESTAT's judgment, questioning whether the Tribunal erred in overlooking significant documents and statements corroborating the assessee's position. The Commissioner and the Tribunal both concluded that the input-output ratio of goods manufactured by the assessee on a jobwork basis remained consistent during the relevant period. The Commissioner relied on a report from the jurisdictional Deputy Commissioner, which confirmed the accuracy of the declared ratio by the assessee based on audits conducted in various years. The Tribunal upheld these findings, emphasizing that the issue primarily involved the assessment of evidence and factual determination rather than a legal question. Consequently, the Tax Appeal was dismissed, affirming the Tribunal's decision.

This judgment highlights the importance of factual analysis and evidentiary assessment in tax appeals. The decision underscores the significance of audit reports and official records in determining the accuracy of declared ratios in manufacturing processes. By upholding the findings of the Commissioner and the Tribunal, the High Court emphasized the factual nature of the dispute and the absence of any legal issues warranting intervention. The case serves as a reminder of the judicial approach to tax matters, focusing on evidence-based conclusions rather than legal interpretations in certain instances.