9911796707
TMI Blog1991 (5) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ds were seized. Value of the electric fans seized as shown in the show cause notice dated 17-2-1989 was Rs. 11,250/-. 1.2 After investigation in the matter, the aforesaid show cause notice was issued which alleged as follows :- (1) The appellant had been manufacturing electric fans without obtaining central excise licence or without making a declaration to that effect. (2) 604 pcs. of Ginni brand electric fans valued at Rs. 2,17,640.00 were cleared without payment of central excise duty to the tune of Rs. 33,979.30 p. in the year 1987-88. (3) 1542 pcs. of electric fans valued at Rs. 6,07,400.00 involving a central excise duty of Rs. 95,605.50 p. were manufactured and cleared during the year 1988-89. (4) The appellant clandestinely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter subsequently every year by 15th April of each financial year. The appellant is not entitled to exemption from licensing control in the absence of any declaration filed by him, mentioned above. Result is, according to the adjudicating authority, that the benefit of exemption from licensing control as well as the benefit of exemption from payment of duty under Notification 175/86 dated 1-3-1986 cannot be extended to the appellant. 1.3 In view of the aforesaid findings, the adjudicating authority has upheld violation of Section 6 of the Act read with Rule 174 as also of the other Rules leading to liability of payment of duty, confiscation of the seized goods and imposition of penalty. He has accordingly confiscated these 45 elect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respective notifications, namely, 11/88-C.E. (NT), dated 15-4-1988 and 175/86 dated 1-3-1986. Further, the production and clearance in any of the financial year being admittedly less than Rs. 7.5 lakhs, the appellant herein was not even required to get himself registered with the competent authority as a small scale industrial unit for the purposes of exemption from payment of duty under Notification 175/86 dated 1-3-1986. This is clear from proviso (a) to para 4 of the said notification which is reproduced below :- 4. The exemption contained in the notification shall be applicable only to a factory which is an undertaking registered with the Director of Industries in any State or the Development Commissioner (Small Scale Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that under Section 6 of the Excise Act no person can engage in the production or manufacture of any specified goods included in the 1st Schedule of the Act except under the authority and in accordance with the terms and conditions of a licence granted under the Act. It would have been seen, therefore, that since skimmed milk or condensed skimmed milk will be a milk preparation within the meaning of Item 1B of the 1st Schedule, a licence to manufacture such milk would be required. If any goods specified in the 1st Schedule are exempted from the levy of excise duty by the Central Government in exercise of their power under Rule 8(1) of the Central Excise Rules, that cannot affect the manufacture of the said goods. (Emphasis supplied) 5.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised on the seized goods as well. 5.3 As regards the confiscation of the goods with an option to redeem them on payment of a fine of Rs. 1,50,000/- the appellant s learned counsel has stated that in view of the technical nature of the offence, confiscation is not justified and in any case redemption fine of Rs. 1,50,000/- as against the value of Rs. 11,250/- of the seized goods is too harsh and the option to redeem the goods of such a low value against such a high fine is illusory. We agree with the learned counsel for the appellant. Since it is admitted that in all the financial years the value of production and clearance of the excisable goods, namely, electric fans was far below Rs. 10 lakhs, the appellant would have automatically bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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