9911796707
TMI Blog2004 (9) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... essees as alleged in the show cause notices. 2. The respondents are engaged in the manufacture of PTY Twisted Yarn falling under Chapter sub-heading 54.02 of the Schedule to the Central Excise Tariff Act, 1985. Intelligence was received that they were indulging in evasion of central excise duty by resorting to undervaluation and clandestine clearance of PTY; that they were clearing PTY from their factory gate at a very low value in the name of fictitious/or non-existing firms, while the goods were actually being cleared to godown at Bhiwandi etc. from where they were subsequently being sold to actual buyers at higher value. Show cause notices were therefore issued alleging that the respondents had issued invoices to show that the sale had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egation that time lag between the clearance date and actual sale is about seven days to one month and on the date of actual sale, the sale price is more than that was shown in the invoice no facts and figures have been furnished to support this allegation. He has further observed that, assuming that sale price at depot was on a higher side, even then there is no justification for taking recourse to Valuation Rules as was proposed in the show cause notice. The Commissioner has correctly held that only in those cases where it can be demonstrated that the provisions of Section 4(1)(a) are inapplicable, recourse to Valuation Rules can be taken as provided under Section 4(1)(b). Learned Commissioner has correctly pointed out that if, according t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndervalued in the invoice. The contention raised by the Revenue on the bank statement was rejected by the Commissioner relying on two decisions of the Tribunal in Punjab Oil Silicate Mills v. CCE, 1993 (65) E.L.T. 268 and Rishab Refractories Pvt. Ltd. v. CCE, Chandigarh, 1996 (87) E.L.T. 93. 7. In Punjab Oil Silicate Mills, 1993 (65) E.L.T. 268, the Department while alleging clandestine manufacture and removal of the goods relied on the figures furnished by the assessee to the Department of Industries or as admitted by the party in their affidavits filed before the Department for getting the coal. The Tribunal took the view that any information obtained from the Department of Industries is not sufficient proof to show that the goods w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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