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TMI Blog2018 (2) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... o was one of the brokers through whom the appellant used to sell their manufactured yarn. During search of the premises of M/s. KTC, the officers noticed certain account books of yarn business conducted by M/s. KTC for the appellant. Based on such documents, the officers visited the premises of the appellant-factory and recovered documents under a mahazar and statements were also recorded. Show cause notice was issued alleging that M/s. KTC had sold yarn which was received from the appellant at a higher price than that was mentioned in the Central Excise invoice of the appellant and thus resulted in undervaluation of the yarn. Demand of Rs. 7,55,548/- was raised for the differential duty along with interest and also for imposition of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 of original order, the adjudicating authority observed that the invoice details etc. of appellant is correctly mentioned in pages 131 to 133 of the Roker Ledger and therefore the comments mentioned in page 130 regarding receipt of higher value also has to be correct. Thus authorities below have presumed that the entries in page 130 of the same ledger under the caption SMR can be relied to confirm the demand, without any further evidence. When there is no evidence to show that the appellant has received any amount over and above the invoice value from M/s. KTC, the entries made in page 130 in the ledger maintained by M/s. KTC cannot be made the basis for demand against the appellant. The appellant is not aware of whether M/s. KTC collected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te-wise, invoice number and party name and quantity of yarn dispatched by appellant which are procured by M/s. KTC. These particulars maintained by M/s. KTC tallies with the invoice raised by appellant. Therefore, the particulars in page 130 which mentioned the brokerage is also genuine and reliable. Further, the Director in his statement has accepted the fact that they were receiving amount over and above the invoice value in certain instances. This statement along with the Roker Ledger would prove that the appellant has been receiving higher value from the customer through broker M/s. KTC than the value in the central excise invoice. Thus, the demand raised is legal and proper. 4. Heard both sides. 5. The allegation against the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in page no. 131 to 133 of the main ledger under the caption SMR , M/s. KTC had maintained date-wise, invoice no. party name, count and quantity of yarn dispatched by M/s. SMR which was brokered by them. The above particulars maintained by M/s. KTC tallies with the invoice raised by M/s. SMR in total. Therefore, the particulars in page no. 131 to 133 is genuine and authentic. When entries in page no. 131 to 133 are authentic, the particulars in page no. 130 of the same ledger under the caption SMR can also be taken reliable. The rate at which payment was made by M/s. KTC to M/s. SMR is authentic. The main ledger of M/s. KTC was also matched by the lower authority with the Roker Ledger of M/s. KTC vide para 30 of the impugned order. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id down in the above decisions to the facts of the present case, we find that though the appellant s factory was visited and searched by the officers, nothing incriminating was recovered from the same except the allegations of the shortages of menthol and gunny bags with which we have already dealt with. To confirm such a huge demand of duty on the allegation of clandestine manufacture, the Revenue is expected to prove the procurement of such a huge quantity of raw materials along with the packing materials and the capacity of the assessee to manufacture such a huge quantity. After all to manufacture such a huge quantum of pan masala or gutka, the appellant admittedly needed lot of raw materials. There is no evidence on record as regards pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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