Commissioner of C. Ex. Vs. Perfect Refractories

1. the assessee is a small scale manufacturer. it recovered certain amounts describing them as surcharge in addition to the price of the goods. the revenue contends that the surcharge represented the excise duty payable on the goods and, therefore, amount so collected should be deposited with the central government in terms of section 1 id of the central excise act.2. section 11d stipulates that every person who has collected any amount from the buyer of any goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the central government. appellant was wholly exempt in terms of exemption notification during part of the period. for remaining period duty was payable by him at reduced rate. no evidence has been brought on record to show that the assessee was, in any manner, representing the surcharge as duty of excise. in any case, during the period of exemption he was not liable to pay any duty at all. in these circumstances, revenue's claim can only be treated as a mere presumption, lacking in any evidence to show that the surcharge collected was represented as duty of excise.3. in view of what is stated above, we find the case to be entirely lacking in evidence. the appeal fails and is rejected.