2001 (4) TMI 403 - AT - Central Excise

Summary

Issues:
- Alleged creation of fictitious entities for tax benefits
- Commissioner's failure to consider evidence in the case

Alleged creation of fictitious entities for tax benefits:
The case involved Pravin Metal Works and other entities manufacturing tractor trailers. The department alleged that three other registered entities were fictitious and created by the partners of Pravin Metal Works to claim tax benefits. The notice proposed disallowing exemption benefits under Notification 1/93 due to exceeding clearance limits. The partners contested this, providing evidence such as bills for machinery, raw materials, and electricity consumption. The Commissioner's order was challenged for not adequately addressing the evidence presented by the appellants.

Commissioner's failure to consider evidence in the case:
The appellants argued that the Commissioner did not properly address various factors presented in their replies and during the hearing. They contended that the reliance on the absence of machinery in the ground plan was flawed, as machinery installation could occur after plan approval. Evidence like bills, stock reports, and witness testimonies were submitted but allegedly ignored by the Commissioner. The Tribunal found that the Commissioner failed to impartially consider the evidence and ordered a remand for a reasoned decision, allowing both parties to present additional evidence if needed. The appeals were allowed, and the impugned order was set aside for reconsideration by the Commissioner.