1987 (7) TMI 471

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..... their reply and after adjudication, the Addl. Collector of Central Excise, Indore confirmed the duty demand and imposed a penalty of Rs. 5,000/-. This appeal is against the said order. 2. We have heard Shri Gopal Prasad, Consultant for the Appellants and Shri Vineet Kumar for the Department. 3. One of the contentions raised by the appellants before the Addl. Collector, and reiterated in the appeal before us, is that cutch was not liable for duty in terms of exemption notification No. 234/82, dated 1-11-1982. But Shri Gopal Prasad did not press the said defence before us in view of certain material produced by himself in pursuance of earlier directions by us, such as the information regarding this product in the publication Wealth of In .....

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..... ortunity to state their case with reference to the balance sheet or the conclusions drawn there from. Shri Vineet Kumar comments that the balance sheet having been prepared by the appellants themselves, there is no question of prejudice caused to them on the ground that the same was not mentioned in the show cause notice as a document to be relied upon. But this submission overlooks the contention of the appellants that since the balance sheet was not even mentioned as one of the documents to be relied upon, the appellants had no opportunity of hearing what inference the Department wanted to draw from the contents thereof and had, therefore, no opportunity to state their own case as to why any such inference was not entitled to be drawn at .....

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..... 62.86 We are satisfied that items 3 to 6 and 8 would certainly not be part of plant and machinery installed. Even so far as item 7 is concerned, it does appear to us that the whole of the amount mentioned therein would be liable to be included, since we do not know what are all the items mentioned therein and how far each of them was part of plant and machinery. For instance, so far as storage tanks are concerned, Shri Prasad submits that these relate to water tanks for use of the staff etc. We are not quite sure whether it would be wholly correct since it may have been necessary to have storage tanks for storage of the product in question, which appears to be a liquid. The appellants have now produced a certificate from the Genera .....

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