- (1.) HEARD counsel for the parties. The assessee is engaged in the business of manufacture of tin containers and in that connection the petitioner has been importing tin-sheets vide import licence. A raid was conducted on the business premises of the petitioner by the Excise Department and then Forms 'A' were recovered showing that the petitioner had applied for import of much larger quantity of raw material than that which was recorded in the excise registers. On this basis, the Excise Department gave an information to the IT Department that the petitioner had suppressed the consumption and production.
(2.) THEREAFTER the Asstt. CIT, Investigation Circle, Ghaziabad, issued a show-cause notice dt. 22nd Sept., 1993 (Annex. '4' to the writ petition). Pursuant to the said show-cause notice the petitioner filed a reply dt. 3rd Nov., 1993 (Annex. "5" to the writ petition) stating that the detailed explanation about discrepancies had been made before the CEGAT. No more details were given by the petitioner in the said reply. The case of the petitioner before us is that no inference could be drawn on the basis of Form 'A' recovered from its business premises by the Excise Department during the raid, because in those Forms inflated figures with a view to importing larger quantity, more quantity was mentioned. The counsel for the petitioner submits before us that higher figures were mentioned in Form 'A' and import licence were also obtained showing the import of larger quantity of the raw materials, but actually import was made of much lesser quantity of the raw material under those import licences. It is also submitted by the counsel for the petitioner that the details of actual import were not furnished before the IT authority, because the detailed explanation was already given to the CEGAT. It is submitted that if an opportunity is afforded now to the petitioner, then the evidence of actual import against the import licence can be given to the IT authorities.
(3.) ON these facts, we dispose of this petition finally with the observations that the assessing authority will give an opportunity to the petitioner to adduce the evidence to show that much lesser quantity of raw material against the import licence was actually imported and consumed by the petitioner. The petitioner will be called upon by the assessing authority to furnish a detailed reply within two weeks from the date a certified copy of this order is produced before him by the petitioner, which the petitioner undertakes to produce before him within a week from today. Until decision by a speaking order on such reply to be furnished by the petitioner, no further proceedings under S. 148 of the Act will be taken against the petitioner pursuant to impugned reasons dt. 21st Aug., 1995 (Annex. '7' to the writ petition) recorded by the Department.;