9911796707
TMI Blog2001 (1) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as under :- 3. The respondents were engaged in the manufacture of excisable goods viz. tarpaulins falling under chapter sub-heading 6301.00 of the CETA. They filed declaration for the year 1988-89 under Notification No. 11/88-C.E. (N.T.), dated 15-4-88 as amended claiming exemption from payment of duty on their processing of cotton fabrics and manufacture of tarpaulins/tents under Notification 111/78 alleging that the products were being manufactured by them without the aid of power, but on a surprise visit to the factory premises by the Excise Officers on 10-5-90, it revealed that they made misdeclaration and were found using the power in the manufacture of the tarpaulins and were in fact manufacturing impregnated/coated fabrics falli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of the tarpaulin with the aid of power was excisable. These facts were also admitted by the other persons named above whose statements were recorded. 4. Thereafter, show cause notice was issued to the respondents vide which duty demand was raised from them and the confiscation of the seized goods and imposition of penalty was also proposed therein. The respondents in their reply to that show cause notice denied the use of power in the manufacture of tarpaulins. They also denied of having violated the term of Notification in question. The Collector of Central Excise who adjudicated that show cause notice dropped the proceedings against the respondents through the impugned order. 5. The Revenue has come up in appeal against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal, partner was recorded and he also admitted that out of 12 sewing machines, three were fitted with electric motors. These facts were also admitted by Ramashray Awadh Narayan Shukla, Security Officer who even conceded that three sewing machines fitted with electric motor found by the Excise Officer, were removed from stitching section to the stores on the instructions of Vipin Kumar Aggarwal, Manager. His this statement was recorded on 15-5-90 and he was corroborated on this point by Assistant Store Keeper, Shri Harikant Shiv Kumar Upadhyay in his statement recorded on 15-5-90 and also by Shri Prakash Kalu Charat, Helper whose statement was also recorded on 16-5-90. Similarly, the Store-Keeper Shri Sadanand B. Sharma in his statement rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stigation. The statements of these persons were, in our view, enough to afford substantial evidence to the adjudicating authority (Collector) to come to a conclusion that power was being used by the respondents in the manufacture of tarpaulin. But still he had ignored the same and observed that the Revenue failed to identify the fabric which was actually stitched on the electrically operated machines with the aid of power as against the rest and this was essential as there were other nine machines which were not fitted with the electric motors. In our view, the Collector had failed to appreciate the evidence including the statements of the partner and other persons working in the factory of the respondents, properly. 11. After having admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he stitching section of the tarpaulins, had found fault with the investigation conducted by the Revenue and held them guilty of having failed to prove the actual manufacture of the tarpaulins by the respondents with the power aided machines. His failure to appreciate all the facts, circumstances and the material brought on record by the Revenue in proper perspective and in accordance with the law, has resulted in miscarriage of justice. Therefore, the impugned order passed by the Collector cannot be sustained and deserves to be set aside. The matter, in our view, to be fair to both the sides, deserves to be sent back to the adjudicating authority for fresh decision in accordance with law after hearing both the sides and affording full oppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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