1987 (11) TMI 198 - AT - Central Excise

Summary

Issues:
- Appeal against order of Additional Collector of Central Excise, Meerut.
- Applicability of Notification No. 80/80 for duty exemption.
- Compliance with declaration requirements under Notification No. 80/80.
- Eligibility for benefit of Notification No. 80/80.
- Confiscation of goods and imposition of penalty.

Analysis:
1. Appeal Against Order of Additional Collector:
The appeal was made against the order of the Additional Collector of Central Excise, Meerut, where discrepancies were found in the stocks of goods manufactured by the appellants. The lower authority imposed penalties and demanded duty payment for goods removed without payment.

2. Applicability of Notification No. 80/80:
The appellants claimed that they were eligible for duty exemption under Notification No. 80/80, stating that they were not required to pay duty based on their production capacity. However, the lower authority found that they did not claim exemption under this notification initially and were availing benefits under a different notification.

3. Compliance with Declaration Requirements:
The lower authority dismissed the appellants' plea for the benefit of Notification No. 80/80 due to the non-filing of a required declaration. However, the appellants argued that they had fulfilled the necessary requirements by obtaining a license, providing manufacturing details, and submitting necessary documents.

4. Eligibility for Benefit of Notification No. 80/80:
The appellants contended that their eligibility for the benefit of Notification No. 80/80 was legally due to them as they satisfied all requirements. The Collector (Appeals) upheld their claim to the benefit of exemption under this notification, which was not challenged by the authorities, indicating acceptance of their eligibility.

5. Confiscation of Goods and Penalty Imposition:
The Tribunal observed that the appellants had complied with the requirements of the declaration under Notification No. 80/80, as evidenced by their regular Central Excise control operations. As the authorities did not challenge the Collector (Appeals) order granting them the benefit, the appellants were deemed eligible for clearance under the notification. Consequently, no penalty was imposed, and confiscated goods were not held liable for confiscation or duty payment under Notification No. 80/80. The appeal was allowed, and the lower authority's order was set aside with consequential relief.