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TMI Blog1988 (3) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the Reference Application was heard. 3. The learned advocate has reiterated the revised questions of law as spe.l.t. out in para 8 thereof. Learned SDR has opposed the Reference Application that none of the questions are of law. These are either questions of fact. based on appreciation of evidence on record, or the law is well settled. 4. Following purported questions of law have been raised :- (i) Was the confiscation and imposition of redemption fine justified in law in respect of fabrics which have not acquired the status of processed fabrics on the day of the visit of the central excise staff to the unit and were yet in process. (ii) Was the order of the adjudicating officer, the Collector (Appeals) and the Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of section 2(f) as applicable to the present case stand challenged in the Supreme Court and their Lordships in the Supreme Court were also pleased to observe that this issue be considered by a Constitution Bench, and is being so considered and a final verdict is still awaited. It thus appears that the point at issue is controversial and highly technical so even the Supreme Court deemed it fit to constitute a five member Bench to reconsider the issue." (vi) Without prejudice to the other contentions, under the facts and circumstances of the case, could the involved of the provisions of Rule 173-Q of Central Excise Rules have not been spared and could the provisions of Rule 226 ibid not have taken case of the venial breach, if any, involv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination of the entries in R.G.I and daily production report for 30-3-1983 the Sector Officer noticed that production of 30-3-83 in respect of the aforesaid lot numbers had been accounted for in these records under the category of manmade fabrics subjected to calendering only - a duty free process. The Sector Officer pointed out that the statutory records in respect of these two lots indicated that the fabric was subjected to a duty free process whereas the pin marks of stenter on the selveges of the fabric clearly indicated that stentering - a duty dutiable process - had been undertaken. According to the Sector Officer when it was pointed out to the management of the appellants Shri Narinder Aggarwal got offended and objected to the Sector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em for contravention of the provisions of Rules 53, 173G, 226 read with Rule 198 and as to why duty should not be demanded from them under Rule 9(2). On adjudication, the goods were confiscated with an option to redeem them on payment of fine of Rs. 25,000.00 and a penalty of the same amount i.e. Rs. 25,000.00 was also imposed on the applicant under rule 173Q. 6. Collector of Central Excise (Appeals) sustained the order but reduced the redemption fine and penalty to Rs. 10,000/- and Rs. 5,000/-respectively. He also observed that having regard to the facts and circumstances of the case, the offence can at best be taken as offence of technical nature, and the confiscation on technical grounds cannot be questioned.... Therefore, taking in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscation, therefore, is not of the fabrics undergoing processing. It is clearly stated that the goods were seized on two different dates. (iii) Confiscation and imposition of fine is based on appreciation of evidence on record as is apparent from the Tribunal s order dated 27-11-1987 extracted above. This is not a question of law. There is nothing either in the Central Excises Salt Act, 1944 or the Central Excise Rules, 1944 made thereunder that the excisable goods lying in a factory are not liable to confiscation. (iv)(a) Collector (Appeals) has nowhere termed the offence as a venial breach, although he has called it technical . Goods in respect of which a breach of the Central Excise Rules has taken place are liable to confiscat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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