1999 (7) TMI 152 - AT - Central Excise

Summary

Issues:
Manufacture of Central Processing Unit (CPU) without excise license, removal without payment of Central Excise duty, and non-compliance with Central Excise formalities.

Manufacture of CPUs:
The appeal involved M/s. Hansa Electronics (I) Pvt. Ltd. manufacturing CPUs without an excise license, removing them without paying Central Excise duty, and failing to comply with Central Excise formalities. Intelligence revealed their activities, leading to searches and seizures. It was discovered that CPUs were manufactured with the help of another company and supplied to a third party under a different brand name. Statements from involved parties confirmed the manufacturing. M/s. Hansa voluntarily paid the Central Excise duty before adjudication. Penalties were imposed on M/s. Hansa and other companies involved.

Failure to Obtain License and Follow Procedures:
The appellants were found to be engaged in manufacturing excisable goods without the necessary Central Excise license and without following the required procedures. They removed goods without paying the Central Excise duty and failed to submit price lists or classification lists. The adjudicating authority determined that the appellants had suppressed facts and imposed a penalty of Rs. 1 lakh on M/s. Hansa Electronics (India) Limited. The Tribunal upheld this decision, citing the contraventions and the appellant's conduct as justifying the penalty. The appeal was rejected based on these findings.

In conclusion, the judgment upheld the penalties imposed on M/s. Hansa Electronics (I) Pvt. Ltd. for manufacturing CPUs without an excise license, removing them without paying Central Excise duty, and failing to comply with Central Excise procedures. The Tribunal found no grounds to interfere with the adjudicating authority's decision, leading to the rejection of the appeal.