9911796707
TMI Blog1997 (8) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ., for the Respondent. [Order per : Shiben K. Dhar, Member (T)]. The appellants are alleged to have manufactured and cleared electric motors and cheese winding machines without following Central Excise procedures and without payment of duty during the period 11-4-1986 to 31-3-1987. The appellants were issued a show cause notice dated 4-6-1987 for the period from 4-12-1986 to 31-3-1987 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic motors and cheese winding machines. Up to August, 1985, they were exempted under Notification 46/81 and subsequently they were covered under exemption Notification relating to small scale industries. In any case, he submits that the mere non-filing of declaration would not take away the substantive benefit under law and cites in this connection the case reported in 1997 (92) E.L.T. 703 (Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /81. He, however, holds that since this Notification has been rescinded in August, 1985, they were required either to avail the small scale concession under the new Notification 175/86, dated 1-3-1986 or to pay excise duty at the standard rate in case they had not fulfilled the condition specified in this Notification. He goes on to record that the appellants continued to avail exemption under Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal relied upon its earlier decision reported in 1995 (79) E.L.T. 147. Apart from this, the very fact that they were otherwise eligible to small scale exemption as recorded by the Collector himself indicated that there could possibly be no suppression, collusion, fraud, or wilful misstatement with intent to evade payment of duty. In regard to electric motors we agree with the learned Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fying the extended period under the proviso to Section 11A are totally absent here. We also note that the Additional Collector has not quantified the extent of short levy involved and yet has gone on to impose a penalty of Rs. 25,000/-. Penalty is a measure of gravity of offence and has to bear a direct relationship to the extent of the gravity. Penalty, therefore, without quantifying the duty cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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