1981 (6) TMI 128 - CGOVT - Central Excise

Summary

Issues involved:
The issues involved in this case include the review of an Order-in-Appeal u/s 36(2) of the Central Excises and Salt Act, 1944 based on the representative nature of samples, challenge to test results, thickness calculation, and the applicability of test results to goods cleared prior to sample drawal.

Representative nature of samples:
The Government issued a show cause notice proposing to review the Order-in-Appeal, stating that the samples drawn were representative, and the party did not challenge the test report of the National Test House. The party argued that the samples drawn were not representative as they were from goods under process, and disputed the test results even before receiving them. They also highlighted that the thickness of circles may vary due to the deep drawing process, producing test certificates and an expert affidavit in support.

Challenge to test results:
The party disputed the test results, mentioning that the circles under seizure had a thickness less than 1.22 mm, as observed by the Superintendent during measurement. They argued that the thickness calculation based on density supported their claim that the circles did not exceed 1.22 mm in thickness. Additionally, they contended that the order confiscating seized goods and demanding duty on cleared circles with presumed higher thickness was erroneous, citing the National Test House report.

Applicability of test results to prior cleared goods:
The party referred to a previous case where the Central Board of Excise & Customs set aside a duty demand order, stating that test results could not be applied to goods cleared before sample drawal. This precedent influenced the decision to drop the review proceedings in the current case based on the party's explanation.

This judgment highlights the importance of representative sampling, challenge to test results, and the applicability of such results to goods cleared prior to sample drawal in excise duty cases.