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1976 (7) TMI 163 - Board - Central Excise
Issues:
1. Non-renewal of excise license for the year 1974. 2. Alleged contravention of Central Excise Rules and Salt Act. 3. Confiscation of goods and imposition of penalty. 4. Eligibility for exemption under Notification No. 158/71-C.E. 5. Correctness of value of clearances and penalty reduction. Analysis: The case involves the appellants, manufacturers of excisable goods, who failed to renew their excise license for the year 1974. The Department alleged contravention of Rule 174 of the Central Excise Rules, 1944, and Section 6 of the Central Excises & Salt Act, 1944, leading to the seizure of goods and issuance of a show cause notice. The Collector imposed a penalty, confiscated goods, and demanded duty based on the non-renewal of the license and continuation of manufacturing activities without a valid license. Upon appeal, the appellants acknowledged the non-renewal but argued it was a minor technical contravention, and other violations stemmed from this lapse. They contended that they were within the exemption limit under Notification No. 155/71-C.E., had they renewed the license. The appellants also raised concerns about the proportionality of the penalty and the correctness of the value of clearances during the material time. The Board rejected the appellants' arguments that they were not working without a license or were exempt from obtaining one, emphasizing that the expired license rendered their manufacturing activities unauthorized. However, the Board acknowledged that the appellants were eligible for exemption under Notification No. 158/71-C.E. due to their compliance with the exemption limit during the material time. Considering the technical nature of the offense and the absence of deliberate duty evasion, the Board reduced the penalty to Rs. 1000 and ordered the release of confiscated goods without a fine. The Board's decision reflected a lenient approach due to the appellants' compliance with the exemption limit despite the license renewal oversight.
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