9911796707
TMI Blog1988 (7) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1944. A penalty of Rs. 25,000/- has also been imposed on the appellants under Rule 173-Q of the Central Excise Rules. The Additional Collector has further held that the detergent cakes seized from the premises of the appellants on 24-3-1983 were liable to confiscation. As, however, the seized goods were provisionally released to the appellants on payment of Rs. 15,000/- with a cash security of Rs. 5,425/-, he appropriated an amount of Rs. 2,000/- out of the cash security. 2. The charge against the appellants drawn by the Department was that they contravened the provisions of Section 6 of the Central Excises and Salt Act, 1944 and Rules 174, 9(1), 173-B, 173-C, 173-F and 173-G of the Central Excise Rules, 1944 inasmuch as they manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddressed to the Assistant Collector, Erode, stated that only a small quantity had been manufactured by using power. This proves that the manufacture of detergent cakes using power was possible in the plodder machine installed in their factory. The evidence of Shri V. Mani, the mechanic and the electrician Shri S.K. Ramaswamy to the effect that the machine was not suitable for operation with the aid of power should be construed only as an after thought and not acceptable. (iii) The certificate issued by M/s. Shivasakthi Industries cannot be accepted in as much as they are not the competent authority to issue such certificate. (iv) The certificate obtained from the Department of Industries and Commerce also does not prove that the power w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at he would argue the case without referring to the copies of the papers submitted on the day of hearing, but he would base his arguments on what has come on record in the order of Additional Collector. Accordingly, the papers submitted in the court at the commencement of the hearing are not being considered by us. 5. Shri Vaidyanathan has argued that the appellants manufactured detergent cakes without the aid of power. Power connection was installed in the factory on 1.3.1982. The detergent cakes were manufactured manually. The plodder machine was designed for use without the aid of power. On 24.3.1983, one 2 HP single phase motor was operated with the aid of power to see whether detergent cakes could be manufactured in that machine with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter it was also stated that the seized goods except for a small quantity which was produced on 24.3.1983 on trial basis by using power were manufactured wholly by manual power and no electric power was used in the production. In another letter dated March, 1983 addressed to the Superintendent, Central Excise, Erode, a copy of which has been placed at page 47 of the paper book, the appellants stated that they were conducting trial with an electric motor without giving proper declaration to the Excise Authorities, but they had removed the said motor and its connection immediately. 6. Arguing for the respondent, Shri Doiphode has stated that the Additional Collector s order is based on the confession that power was used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. Shri S. Loganathan confirmed the above statement. Shri V. Govindaswamy, a daily wages employee of the factory stated that for the past four or five months the detergents were manufactured with the power connected machine. Another daily wages employee Shri S. Kittysamy stated he was employed in the manufacture of detergent cakes for the past six months and that the said goods were manufactured in the plodder machine connected with electricity. None of the above persons has stated that the detergent cakes were manufactured with the aid of power with effect from 1-4-1982. The statements were also retracted by letter dated 29-3-1983 in which it was stated that the statements were recorded under duress and those were not voluntary. It was al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the effect that the plodder machine has to be suitably altered for use of power in the manufacture of detergent cakes and that too 2 HP three phase motor is essential for running the machine. Such an enquiry was also called for in view of the letter of the Industries and Commerce Department refusing to issue a permanent Small Scale Industries certificate on the ground that the factory was not having a machine operated by power. 8. Paragraph 9 of the impugned order shows that the appellants produced, the electric meter readings showing the consumption of electricity from April, 1982 to May, 1983. The Additional Collector has not given any findings as to whether on the basis of units of electricity consumed by the appellants it could be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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