2018 (6) TMI 1244 - AT - Central Excise

SSI Exemption - demand for duty has been raised by Revenue by working out the total turn-over in various years on the basis of the copies of invoices, as well as the kacha parchies recovered during search - The main grievance of the appellant is that a flat discount at the rate of 30% has been extended from the MRP found in the price-list of the appellant. It is argued that benefits in the range of 30-80% has been extended by the appellant in respect of various products. Held that - The appellant has submitted only a table indicating discounts ranging from 30 to 80% claiming to be extended for various clearances made under kacha parchies. In the absence of any other documents evidencing the grant of such discounts, we are unable to accept the argument of the appellant - appeal dismissed - decided against appellant.

Summary

Issues:
Challenge to Order-in-Appeal reducing duty demand and penalties based on evasion of Central Excise duty and imposition on proprietor.

Analysis:
The case involved a challenge to the Order-in-Appeal reducing the duty demand and penalties imposed on the appellant for allegedly evading Central Excise duty. The Departmental Officers conducted a search on the appellant's units based on intelligence suggesting duty evasion. Various invoices and kacha slips were recovered during the search, leading to the seizure of unaccounted manufactured goods. Subsequently, a demand for Central Excise duty of &8377; 13,78,690/- for the period 2008-09 to 2012-13 was raised, along with penalties. The original adjudicating authority concluded the proceedings with the mentioned demand and penalties, which were reduced in the Order-in-Appeal under challenge. The duty demand was reduced to &8377; 2,92,045/- and the penalty amounts were also decreased, including the penalty imposed on the proprietor. The appellant contested this decision through the present appeal.

The appellant argued that the duty demand was calculated based on total turnover from invoices and kacha parchies, with a flat discount of 30% applied to the latter. They claimed to have extended discounts ranging from 30% to 80% while clearing goods, which, if considered, would place them within the exemption limit of SSI Notification No.8/2003, thereby negating the duty demand. The appellant presented tabulated evidence to support their claim. The Revenue, represented by the ld. DR, supported the impugned order.

Upon hearing both sides and examining the records, it was found that the appellant, operating two units manufacturing electrical goods, did not register but sought SSI exemption under Notification No.8/2003 without filing required periodic declarations. The duty demand was based on recovered invoices and kacha parchies. The Commissioner (Appeals) limited the discounts to 30% as the appellant failed to provide sufficient evidence of discounts ranging from 30% to 80%. The valuation was based on the proprietor's admissions, and the appellant's argument lacked supporting documentation beyond the discount table, leading to the rejection of their appeal.

In conclusion, the Tribunal upheld the impugned order, finding no grounds to interfere, and rejected the appeal.