Case Law Details
Zirconia Cera Tech Glazes Vs DCIT (ITAT Ahmedabad)
ITAT find that in this case the basis of addition is contents of show-cause notice issued by the Excise Department. An investigation was carried out by DGCEI at assessee premises, wherein it was alleged by the Excise Department that assessee has not declared actual assessable value of goods manufactured and cleared from factory. Based on the same DGCEI issued show-cause notice, Excise department concluded that assessee was engaged in under valuation of sales and clandestine removal of goods. Only on the basis of same Assessing officer reopened assessee’s income tax assessment for the years under consideration and made addition of estimated Gross Profit on under valuation sales and clandestine removal of goods.
The Revenue has brought nothing on record that it has applied it’s mind over and above the contents of show-cause notice in question thus there is lack of independent application of mind on behalf of revenue in these matters.
We also find that in Excise proceedings, concerned authorities passed order against assessee and matter was carried up to concerned Hon’ble CESTAT. Hon’ble CESTAT passed an order dated 12/05/2015 as discussed above, has decided the issue in favour of the assessee holding that Excise Department could not estimate value of alleged suppression of sales as well as clandestine removal of goods merely on the basis of assumption and surmises. The CESTAT having considered the relevant facts of the case and statement recorded by the Excise Department has decided the matter in favour of the assessee as discussed in the order of the CESTAT. In our considered opinion and in the facts and circumstances of the case ld. CIT(A) was not justified in observing that relief granted by Hon’ble CESTAT was highly technical.
It is pertinent to mention here that in connected matter we also find that Excise Department carried matter before Hon’ble Supreme Court wherein same was dismissed as withdrawn. Nothing contrary was brought to our knowledge on behalf of Revenue in this regard.
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