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1994 (1) TMI 168

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..... manufactured and cleared by the appellants. 2. Shri Rajagopalan, the learned Counsel for the appellants, submitted that as early as on 19-6-1987 the appellants addressed a communication to the Asstt. Collector of Central Excise (Preventive), Madras, bringing out all the details in regard to the manufacture of the goods, viz. Analgin IP and other goods and also the emergence of the intermediate product like MMAA Oil, which is the subject matter in the present appeal. The learned Counsel in particular referred to the internal page 3 of the said communication wherein the appellants clearly wrote to the Department about the emergence of the intermediate product MMAA Oil during the manufacture of Analgin IP and also sought a clarification as t .....

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..... contended by the learned Counsel, as early as 19-6-1987 the appellants addressed a communication to the Asstt. Collector of Central Excise (Preventive), Madras giving all the details about the manufacture of the bulk drugs Analgin and other goods and also the emergence of the intermediate products such as MMAA Oil, with which we are concerned in this appeal and seeking a clarification from the Department as to whether any duty at all would be leviable therein. The letter at the relevant portion reads as under : e. Two more drug intermediates namely Di Sodium Salt and Mono Methyl Amino Antipyrine also come into existence in the process of Analgin I.P. Powder. These two are also organic compounds falling under Chapter 29 and are available .....

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..... ow up with a series of reminders with the Department. We are also not able to understand as to why the Departmental authorities in the light of the letter of the appellant did not pursue the matter to find out as to whether any classification list was filed or not. Be that as it may, the main point to be considered in dealing with an allegation of suppression is as to whether the manufacturer concerned was actuated by bona fides or mala fides. It cannot be contended in the facts of the present case that the appellant was actuated by any mala fides particularly in the light of the detailed letter written by the appellants way back on 19-6-1987 to the departmental authorities. We also note that there is no finding of any mala fides against th .....

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..... part of the producer or manufacturer either not to take out a licence in case where there was scope for doubt as to whether licence was required to be taken out or where there was scope for doubt whether goods were dutiable or not, would not attract Section 11A of the Act.... Therefore, in the light of the evidence available on record, particularly in the context of the letter of the appellants disclosing all the relevant details with reference to manufacture of the goods in question to the Department and seeking clarification and also bona fide entertaining a doubt with reference to the dutiability of the goods in question and in the absence of any response from the Department, the charge of suppression against the appellant cannot be l .....

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