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TMI Blog2022 (10) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... AT:- This is corroborated by the documents resumed vide panchnama dated 10.06.2014 (being weighment slips, despatch summary dated 9/10.06.2014). Clandestine removal of shortage in stock (found in verification) is also admitted by the Accountant Mr. R. G. Choudhary, the Despatch Clerk Mr. Anuj Agarwal and the Director Mr. Rajesh Garg. Accordingly, this demand is confirmed with penalty. Appeal allowed in part. - Excise Appeal No. 52041-52042 of 2019-SM - FINAL ORDER Nos. 50950 – 50951/2022 - Dated:- 4-10-2022 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Sh. Bipin Garg, Advocate for the appellant Ms. Tamanna Alam, Authorised Representative for the respondent ORDER The issue in this appeal is whether demand of duty has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... patches were compared with the bills raised for clearance of finished goods, it was revealed that for the despatches mentioned in the slips against which no bill number was mentioned, no bill/ invoice had actually been raised and the goods were clandestinely removed. On the same day statement of Sh. Anuj Agarwal, Despatch Clerk of the appellant was recorded, who inter alia stated that on receipt of supply order, he or Sh. Satnam Singh recorded on a slip pad. As soon as the recorded quantity is loaded on the vehicle, they prepare a weighment slip and on this basis, invoice is prepared. He prepares day-wise despatch summary of total quantity cleared on a particular day. On being shown the slip pad, weighment slip pad containing weighment slip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finished goods, and also as per the admission of Sh. Anuj Agarwal, Despatch Clerk, Sh. Ram Gopal, Manager Accounts and also confirmed by the Director, Sh. Rajesh Garg. 5. During pendency of the investigation, the Income Tax authorities conducted the survey of the factory premises on 09.10.2014 wherein they also resumed certain documents. The Income Tax Department forwarded copy of some documents and statement recorded of the Director Sh. Rajesh Garg. Among the documents forwarded was a copy of diary marked as Annexure AS-9 (pages 1 to 7). The pages of the diary revealed entries relating to cash transaction made by Sh. Rajesh Garg during the period August, 2014 to October, 2014, being seven entries totalling Rs.2,99,35,000/-. Sh. Rajesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egards the excess cash found Rs.2,34,127/-, he stated that the same was also out of property transaction. As regards the difference of stock found in survey by IT authority, it was stated that the difference was negligible and attributable to calculation error. 7. It appeared to the Central Excise Officer that the said amount of Rs.2,99,35,000/- + Rs.2,34,127/- totalling Rs.3,01,69,127/- was the cash receipts out of clandestine despatch of finished products and accordingly the appellant was liable to pay duty on the same. Accordingly, show cause notice dated 17.05.2017 was issued, proposing to recover duty of Rs.37,28,904/- on the cash component of Rs.3,01,69,127/- and Rs. 7,19,477/- with regard to shortage of stock of finished goods on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the search by the Income Tax authority, wherein the slips disclosed the name of person to whom the payment was made on account of property dealing. He further relies on the Assessment order under the Income Tax Act for the assessment year, 2015-16 dt. 20.12.2017 relating to the disputed period financial year 2014-15. The Income Tax authority has recorded the fact of survey conducted on 10.10.2014 and also mentioned the excess cash found Rs.2,34,127/- and also the slips found with regard to cash paid to certain persons totalling Rs.2,99,35,000-/-, both these amounts have been disclosed to taxation relating to financial year 2014-15. The Dy. Commissioner of Income Tax have accepted the business and income from other sources, only rejected the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l contentions, I find that the amount of Rs. 3,01,69,127/- (Rs.2,99,35,000/- + Rs.2,34,127/-) have been accepted by the Income Tax Authority, as income from other sources (property dealing). Thus, there is no reason to treat this amount as attributable to clandestine sales of finished goods. Thus, the duty demand along with penalty of Rs. 37,28,904/- is set aside. 13. So far the other demand of Rs. 7,19,477/- is concerned, I find that this is corroborated by the documents resumed vide panchnama dated 10.06.2014 (being weighment slips, despatch summary dated 9/10.06.2014). Clandestine removal of shortage in stock (found in verification) is also admitted by the Accountant Mr. R. G. Choudhary, the Despatch Clerk Mr. Anuj Agarwal and the Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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