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TMI Blog1985 (9) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... n X viscose composition which made them liable to higher tariff values and consequently higher amount of central excise duty. In the follow-up action, a small part (87 pieces) out of the same lot of goods and carrying the same brand name Roop Rani were seized at the premises of a dealer at Ahmedabad also. On stock-taking, certain shortages and other irregularities were noticed in the appellants factory. On adjudication of all the violations noticed, the Collector confiscated the fabrics involved, giving option for their release on payment of redemption fine, demanded difference in duty which was found to be payable and further imposed a penalty of rupees one lakh on the appellants under Rule 173Q of the Central Excise Rules, 1944. In appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said test report and the statements, the department had not made them available to the appellants. Instead, the Collector as well as the Board presumed the fabrics seized at Ahmedabad as of nylon X viscose composition on the sole ground that they carried the brand name Roop Rani and that fabrics carrying this brand name which were tested from the Surat lot were found to be nylon X viscose. The appellants believed that the test report and traders statements were in their favour and that the department had deliberately kept them back. This, according to them, violated the principles of natural justice. (2) Following the Gujarat High Court judgment in the well-known case of Vijaya Textiles, 1979 E.L.T. (J 181) in which it had be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... last month that the said record was lying in the Ministry s office at Delhi. In response to our query, she stated that thereafter no effort had been made to get the record from the Ministry s office. 4. We have carefully considered the matter. Taking the appellants second plea first, we find that in their judgment [1985 (20) E.L.T 179 S.C.] in the case of Messrs. Empire Industries Ltd., the Supreme Court have reversed the Gujarat High Court judgment in Vijaya Textiles-1979 E.L.T. (J 181) case. The Supreme Court have held that etymologically bleaching, dyeing, printing etc. of fabrics amounted to manufacture. The implication of this is that even without taking into account the amendments made by the Ordinance of 1979, processing of grey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent but if the appellants feel that these documents are vital for their defence, they become relevant evidence for the case and if the department keeps them back, it would amount to violation of principles of natural justice. From the proceedings we find that such violation of principles of natural justice has taken place in respect of the fabrics seized at the premises of M/s Raj Kumar Co. of Ahmedabad. Although the quantity so seized is insignificant as compared to the overall quantity involved in the Surat seizures and stock shortages, that, in our view, cannot be a ground for glossing over the matter. 6. Accordingly, we set aside the order of confiscation in respect of 87 pieces of fabrics seized at the premises of M/s Raj Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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