Order Date – 02 June 2023

Parties: M/s. Surya Metalloy Pvt Ltd Vs Commissioner (Appeals) of Central Excise and Central Goods & Service Tax

Facts – 

• The Appellant, M/s. Surya Metalloy Pvt Ltd, engaged in the manufacture of MS Ingots was appeared to have short paid Central Excise duty during FY 2015-16, as shown in their balance sheet in comparison to the value shown in ER-1 returns.
• A show cause notice was issued to the appellant, proposing therein recovery of Central Excise duty along with interest and imposition of penalty under Section 11AC of the Act.

Issue – 

• Whether Central Excise duty have been rightly demanded along with interest and penalty under Section 11AC of the Central Excise Act?

Order – 

• The Tribunal observed that appellant have lead sufficient evidence and explained the apparent difference. Both the Court below have not found anything erroneous or misgiving in the cogent explanation given by the appellant corroborated by books of accounts and vouchers. 
• Undisputedly, appellant has profit from trading in commodities Rs. 8,52,60,853/- during the period. Further, the contentions are also supported by the certificate of the Chartered Accountant. Further there is a categorical finding recorded by the Commissioner (Appeals) in favour of the appellant to the effect that the appellant has properly explained the apparent difference supported by books of accounts- commodity trading account, ledger etc.
• Thus, in spite of finding that the apparent difference is properly reconciled, still the Commissioner (Appeals) have rejected the appeal by some irrelevant observations without there being any finding of fact against the pleadings of the appellant.
• Hence the appeal is allowed.