1990 (8) TMI 247 - AT - Central Excise

Summary

Issues: Alleged clandestine manufacturing and removal of yarn without license and duty payment.

The judgment by the Appellate Tribunal CEGAT, New Delhi, involved an appeal against an order passed by the Additional Collector, Customs and Central Excise, Chandigarh, regarding the confiscation of spun yarn and imposition of duty and penalties. The appellant's factory premises were visited by officers who found waste and bags of yarn. It was alleged that the yarn was spun without a license and duty payment. The appellant's arguments included the recent installation of spindles and lack of evidence linking the yarn to their activities. The Respondent reiterated the Additional Collector's arguments. The Tribunal analyzed the evidence, including commonalities between the appellant and another firm, employment of workers, production records, and machinery installation dates. The Tribunal found the Additional Collector's reasoning unconvincing, noting discrepancies in the evidence. The Tribunal highlighted the lack of concrete evidence linking the yarn to the appellant's activities. Consequently, the impugned order was modified, setting aside the penalties imposed on the appellant and a partner. The appeal was allowed in favor of the appellant.

The issues in this case revolved around the alleged clandestine manufacturing and removal of yarn without the necessary license and duty payment. The Tribunal carefully analyzed the evidence presented, including the commonalities between the appellant and another firm, employment records, production details, and machinery installation dates. The Tribunal found discrepancies in the Additional Collector's reasoning and highlighted the lack of concrete evidence linking the spun yarn to the appellant's activities. As a result, the penalties imposed on the appellant and a partner were set aside, and the impugned order was modified in favor of the appellant.