1999 (10) TMI 507 - AT - Central Excise

Summary

Issues:
Manufacture of Bata brand shoes without aid of power, exemption from payment of duty under Notification No. 49/86, demand of duty, imposition of penalty, machinery operated with the aid of power found installed, unaccounted shoes, certificates from M/s. Bata India Ltd. and Central Footwear Training Centre, evidence of manual manufacturing.

Analysis:
The case involved the issue of manufacturing Bata brand shoes without the aid of power and the subsequent exemption from duty under a specific notification. The ld. Commissioner (Appeals) initially held that the appellants were exempted from duty as they were manufacturing shoes without power. However, the Revenue filed appeals against this decision, leading to a joint hearing of two appeals related to different periods on the same issue.

Upon visiting the factory premises, Central Excise Officers discovered the production of Bata Brand Footwear by the appellants. They found electrically operated machinery and unaccounted shoes. The officers issued show-cause notices proposing the recovery of Central Excise Duty and penal action. The appellants argued that the machinery found was not used for manufacturing Bata brand shoes, supported by certificates from M/s. Bata India Ltd. and the Central Footwear Training Centre, stating the shoes were handmade without power.

The Revenue contended that the machinery operated with power was present, justifying the demand of duty and penalty imposed by the Dy. Commissioner. However, the Proprietor of the respondent firm maintained that the shoes were manually manufactured without power, with evidence from certificates and lack of proof from the Department showing power usage in production.

After considering the submissions and evidence, the Tribunal noted the appellant's explanation for keeping machinery unused due to reduced demand. Certificates from M/s. Bata India Ltd. and the Central Footwear Training Centre supported the manual manufacturing claim. The Department failed to provide evidence contradicting these certificates or showing power usage during the visit. Consequently, the Tribunal upheld the decision of the ld. Commissioner (Appeals), rejecting the appeals and confirming the exemption from duty for manual manufacturing of Bata brand shoes without power.