1985 (3) TMI 173 - AT - Central Excise

Summary

Issues:
1. Confiscation of dyed fabrics and imposition of redemption fine and penalty under Central Excise provisions.
2. Applicability of provisions of Central Excises and Salt Act in relation to the levy and collection of additional duties of excise under a specific Act.

Analysis:
1. The judgment involves the confiscation of dyed fabrics and imposition of redemption fine and penalty on M/s. Ashoka Dyeing and Finishing Mills for contraventions of Central Excise provisions. The Central Excise Officers raided the factory premises, leading to a show cause notice and subsequent orders by the Collector of Central Excise, Chandigarh. The Central Board of Excise and Customs later reduced the redemption fine and penalty but confirmed the confiscation order. The appellants contested the findings regarding contraventions, including removal of fabrics without payment of duty and absence of lot numbers on processed fabrics.

2. The main contention raised in the appeal was the validity of the orders related to confiscation and redemption. The argument centered on the applicability of provisions of the Central Excises and Salt Act in relation to the levy and collection of additional duties of excise under a specific Act. The appellants argued that only provisions related to the levy and collection of excise duties would be applicable to additional duties of excise. However, both the Collector and the Board rejected this argument, interpreting the phrase "in relation to" in the relevant Act to cover confiscation and penalties as incidental to the levy and collection of excise duties.

3. The judgment referred to a Supreme Court decision in a tax-related case to support the interpretation of the phrase "levy and collection" in the context of statutory provisions. Drawing parallels, the judgment concluded that provisions of the Central Excises and Salt Act related to confiscation for contraventions of excise laws would fall within the ambit of the phrase "levy and collection" as mentioned in the specific Act governing additional duties of excise. Consequently, the contention challenging the applicability of confiscation provisions was rejected. The Board's orders on redemption fine and penalty were upheld, with no grounds for modification identified.

4. Ultimately, the judgment confirmed the orders of the Board, dismissing the appeal brought by M/s. Ashoka Dyeing and Finishing Mills. The decision reaffirmed the validity of the confiscation, redemption fine, and penalty imposed by the authorities, emphasizing the broad interpretation of statutory provisions in excise matters and the consistent application of relevant laws in such cases.