9911796707
TMI Blog2007 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the Revenue, the respondent-assessee was indulging in evasion of excise duty by resorting to undervaluation and were clearing the goods at a very low value by showing fictitious factory gate sales, though they were actually transferring their goods to godowns at Bhiwandi from which actual sales took place at a higher value. During the search of the respondent- transport company, yarn belonging to the assessee was found stored in their godowns for which the relevant documents evidencing payment of duty could not be produced and therefore, the material was seized. The allegation of the Revenue was that, PTY was cleared in the name of bogus buyers and these goods were transported to the godowns of main transporters at Bhiwandi and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged in the show cause notice, valuation under Section 4(1)(b) could not have been resorted to Moreover, no effort was made to demonstrate the price difference in invoices, though it was stated in the show cause notice that the sales were effected from the depots at higher prices It was also held that no effort was made to cross check the money realization against the sales effected vis-a-vis the prices shown on the invoices before discarding the invoice price and rushing to price determination under the residual Rule 7 of the Valuation Rules. 4. The learned authorized representative for the appellant-Revenue has strongly contended that there was ample evidence to show that the excisable goods PTY were cleared in the names of bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the independent transporter was the place of removal. Since the sales were made at the factory gate, the invoices were required to reflect the price at the time of removal from the factory gate. The two brokers Jyanatibhai and Bhanuhai in their statements had stated that the buyers who were weavers could come to their office and after negotiating the price with the manufacturer, the price would be conveyed to them and if agreed by these buyers, the orders could be placed on the manufacturer and after confirmation, the delivery was directly made by the manufacturer to the buyers. This explains why the names were not personally known to the manufacturer and they would write the names given to them by the brokers in the invoices while dispatc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what was the actual realization from the ultimate buyers. It was not even established that the prices paid by the actual buyers were different from the prices at which the goods had been assessed to duty and as to what was the differential amount, and no effort was made to cross-check the money realization against the sales effected as per the price shown in the invoices. There was no allegation of falsification of the ledger books. Since it was not established that the sales realization was higher than the amount declared in the invoices, the Commissioner (Adjudication) was justified in dropping the demand. We concur with the reasoning adopted by the learned Commissioner (Appeals), which is based on the relevant material on record warrant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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