9911796707
TMI Blog1994 (10) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... se Rules, 1944, (ii) manufacture of goods without licence and (iii) clearance of the goods without approval of classification list. The learned lower authority has also confiscated the neem antifeedant and allowed the same to be redeemed on payment of fine of Rs. 10,000/-. A penalty of Rs. 5,000/- has also been imposed on the appellants for violation of Rule 173Q of the Central Excise Rules, 1944. 2. Shri J.B. Koshy, the learned Counsel for the appellants pleading in regard to the money credit scheme relatable to the quantity of neem antifeedant produced from Neem oil, pleaded that neem oil contains gummy material which ultimately does not form part of the soap which is manufactured in the appellants factory and gets removed during the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aded that the goods have been seized on 15-2-1991 and by this time the appellants had already made a number of clearances and it should be presumed that they had applied for the licence and the classification list had been approved by them. However, he is not able to produce any evidence in regard to the date of application for licence and also provisional approval of the classification list. 4. Shri P.R. Prasad, the learned SDR pleaded that the appellants have admittedly manufactured two products viz., neem antifeedant to be used as pesticides and also soap and the gummy substance used as neem antifeedant has been removed before the manufacture of soap and not during the process of manufacture of soap and for that reason the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the final products and that such intermediate products are for the time being exempted from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty : Provided that such intermediate products are used within the factory of production in the manufacture of final products on which duty of excise is leviable whether in whole or in part. 6. I observe that the gummy substance forms part of the neem oil and the same gets removed as it is during the process of the manufacture of the soap as pleaded and there is no plea contra, and the removal of the gummy substance therefrom, appears to be a technical necessity and it does not matter if it is removed before or during the process of manufacture of soap. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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