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TMI Blog1997 (3) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory, seized some documents and also recorded the statements of the Director of the appellant s unit and several other persons. After completing investigation, show cause notice dated 20-7-1987 was issued seeking recovery of a sum of Rs. 12,69,073.47, being excise duty as well as handloom cess on such fabrics falling under Chapter 55 cleared during the period from July, 1983 to July, 1986. Confiscation of the land, building, etc. under Rule 173Q(2) was also proposed. It was alleged that the appellants were liable to a penalty under Rule 173Q(1). The Collector in his order dated 25-8-1988 confirmed the demand, imposed a penalty of Rs. 1 lakh, ordered confiscation of the land, building, etc., but, permitted redemption thereof on paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different grounds. Ultimately at the end of the August, 1988, the Collector after final warning fixed the hearing which the appellants did not choose to attend. The Collector has narrated the events and his reasons for going ahead with the finalisation of the case in three paragraphs in his order. He has also taken into account and has discussed in his order all the submissions made by the appellants in their replies to the notice. On perusal of the correspondence and various reasons we do not find that the appellants had any serious obstacles in either securing the copies of the documents relied upon or in attending the hearing when required. The plea of denial of natural justice would stand when it is shown that the justice was denied un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard. It appeared that the department had not drawn any samples to determine whether the cloth was processed so to make it dutiable. In the reply to the show cause notice it was claimed that the cloth was scoured, that is washed in jiggers and dried on stenters. At the material time Tariff Item No. 22(1)(b) described the excisable fabrics as below : (b) man-made fabrics, subjected to the process of bleaching, dyeing, printing, shrink-proofing, stentering, heat-setting, crease resistant processing or any other process or any two or more of these processes. The assessees has placed on record two test reports which are silent on the processing on the contested goods, although they cover their constructions and possible uses. As per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e SASMIRA also. These were not presented before the Collector, being of later vintage nor did the Collector had the benefit of any other technical opinion. It is, therefore, necessary that the matter be referred to the Collector for consideration on this count. 6. Such reconsideration may not be limited to the issue of classification only. The assessees have claimed the benefit of Notification No. 35/84-C.E., as amended. This Notification prescribed the rate of 2 per cent of additional duty of excise on MMF containing less than 70 per cent by weight of polyester fibre. The Collector has rejected this claim on the grounds that the construction of the fabrics was not declared to the department and also that the manufacturer had been suppres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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