1985 (7) TMI 369 - AT - Central Excise

Summary

Issues:
1. Allegation of manufacturing and selling Bidis outside the factory without paying excise duty.
2. Questions of law raised regarding natural justice, evidence of benamidars, and evasion of excise duty.
3. Opportunity for cross-examination during investigation proceedings.
4. Reference application based on facts without any legal point.

Analysis:
1. The Tribunal found the appellants guilty of manufacturing Bidis outside their factory and selling them under their brand name without paying excise duty. The department provided sufficient evidence connecting the appellants to the manufacturing and sale of bidis, leading to confiscation of the bidis and imposition of penalties for violating Central Excise Rules.

2. The applicants raised questions of law related to natural justice, evidence of benamidars, and evasion of excise duty. However, the Tribunal determined that the impugned order was based on factual evidence and did not involve any legal points. The Supreme Court precedent highlighted that for a reference to be made, there must be a question of law, which was not the case here.

3. The applicants argued that denial of the opportunity to cross-examine the witnesses during investigation proceedings amounted to a miscarriage of justice. However, the Tribunal noted that this argument was not raised during the main appeal arguments and was not considered in the judgment. Citing a Supreme Court ruling, the Tribunal emphasized that a question of law not raised before and considered by the Tribunal cannot be deemed to arise out of its order.

4. Ultimately, the Tribunal rejected the reference application as it concluded that no question of law emerged from its order. The reference application was deemed not maintainable due to its basis on facts without any legal points. The Tribunal emphasized the importance of distinguishing between questions of law and factual disputes in seeking references to higher courts.