COMMISSIONER OF CENTRAL EXCISE, SURAT Vs. BABA SYNTHETICS

JUDGEMENT

(1.) The facts, briefly stated are that on perusing of certain details of the statutory records of M/s. Baba Synthetics Group of Industries, the officers seized one document namely Sauda Book/ Sauda File kept by Shri Mahesh Mistry. On scrutiny of this document, it was noticed that M/s. Baba under valued the Texturised yarn which was sold through broker Shri Mahesh Mistry. On further scrutiny of the ledger book and on perusal of other details thereof with the details shown in the invoices of M/s. Baba Fibers it appeared that, had collected an extra amount of Rs. 1,04,94,838/ - from their customers for Texturised yarn during the year 1996 -97 and it was alleged that Central Excise duty amounting to Rs. 45,79,923/ - was short paid/evaded. The case was adjudicated subsequently and the original adjudicating authority ordered as follows : -

(2.) WE have gone through the various documents, submissions of both sides and other related documents in the case. The findings of Commissioner (Appeals) in this case at Para 15 and 16 of his order are very significant and are reproduced below : -

(3.) AS found by the Commissioner (Appeals), it is seen that the appellants never cleared goods to M/s. Kala W works and if so, the rate of M/s. Kala W works cannot be applied to work out the differential amount. Commissioner (Appeals) in his findings also make out it very clear that though the department quoted complete details of sale transaction of entire disputed period, no investigation was extended to any customer that they had made any payment on extra consideration to the appellant. There has been no corroborative evidence available on record about the receipt of any extra consideration. The findings of Commissioner (Appeals) assume significance as these evidences could have sustained the entire case. In fact in the ground of appeal also, the Revenue is silent about this aspect.