By TIOL News Service

AHMEDABAD, JUNE 26, 2018: THE matter at hand before the High Court is whether additions based on SCN issued by Excise department are valid where the CESTAT adjudicates the matter in favor of the assessee & sets aside duty demands raised by the Excise department. NO is the answer.

Facts of the case

The Revenue preferred the present appeals challenging the judgment passed by the ITAT, whereby additions made by AO on the ground of under valuation of sales, estimated gross profit and clandestine removal of goods, stood deleted.

On appeal, the High Court held that,

++ it is required to be noted that similar additions were made by the AO on the very ground with respect to different Assessment Years, which came to be deleted by the Tribunal and against the very common judgment and order but with respect to different Assessment Years by which the Tribunal deleted the additions made on the ground of under valuation of the sales, on the ground of estimated GP and on the ground of clandestine removal of goods, Department preferred Tax Appeal Nos.599/2018 to 601/2018 and by the common judgment and order dated 12/06/2018, Division Bench of this Court having noted and considering the fact that the Tribunal ultimately deleted the additions primarily on the ground that by virtue of the judgment of the CESTAT, the excise show-cause notice was adjudicated in favour of the assessee and the CESTAT deleted the additions on excise side, and therefore, the Tribunal was justified in deleting the additions made by AO, Division Bench has confirmed the very common judgment and order but with respect to different Assessment years.

(See 2018-TIOL-1193-HC-AHM-IT)