9911796707
TMI Blog2000 (11) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... the Collector confirmed the duty demand of Rs 1,94,580/- on the present appellants and seven other processors of cotton fabrics. This duty has been confirmed under Rule 9(2) of the C.E. Rules, read with Section 11A of the Central Excise Rules, 1944. The other processors are not in appeal before us and therefore, this order is restricted to the present appellants viz. M/s. Lakshmi Processing Mills, Erode. Penalty of Rs. 20,000/- was also imposed under Rules 9(2), 52A, 173Q and 226 of the C.E. Rules, 1944 on the appellants. This case arose after the visit of the officers of the Erode Division to the premises of one M/s. Pandian Textiles whose partner Shri A.A. Rangaswamy, explained that bleached and dyed cotton fabrics/terry towels seized by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... textiles were entered therein which was processed with the aid of power and were sent to different parties after processing. The Collector after considering the reply has confirmed the demand of duty of Rs. 87,547 under Rule 9(2) read with proviso to Section 11A of the C.E. Act, 1944 and imposed penalty of Rs. 10,000/- on firm under Rules 9(2), 52A, 173 and 226 of the C.E. Rules, 1944 and ordered confiscation of the seized goods at his premises with an option to redeem the same and the goods were provisionally released on redemption fine as the same were not available for confiscation. He imposed a fine of Rs. 20,000/-. Penalties were also imposed on various other processors under Rule 9(2) who are not in appeal before us. 4. Shri K. Jag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellants. This, he submitted, was in direct conflict with the statement which was recorded from Shri Rangaswamy and also the findings arrived at by the Collector. He, therefore, submitted that prayer for cross-examination of Shri Rangaswamy and its denial had caused great prejudice to his clients. The cross-examination sought for should have been granted so that the defence could be effectively made. He pleaded as regards his clients, the order should be set aside and the appeals allowed on any one of the grounds or on all the grounds made out by him. 5. Shri S. Kannan, learned DR appearing on behalf of the department submitted that there is clear-cut admission that the goods were processed by use of power and the Collector ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made out by the learned Counsel for the appellants. He reiterates the detailed findings arrived at in the two orders and submits that the appeals should be dismissed. 6. The learned Counsel in the counter submitted that the statements of Shri A.A. Rangaswamy and the employee that the diary does not show that the processing has been done with or without the aid of power is not correct and the Counsel prayed to us to inspect the diaries. 7. We have considered the submissions and the material on record and find that : (a) Diary has been relied upon in both these cases very heavily by the Revenue as well as by the defence while we find that the learned Collector has taken an interpretation as brought out in the show cause notice to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d should be dealt with in detail by the adjudicator. So that justice is not only done but also appear to have been done in this case. For these reasons we find the order of the Collector cannot be sustained and is required to be re-adjudicated for which purposes the Collector should re-consider the request for cross-examination of the concerned persons and thereafter grant personal hearing to the appellants to explain the charts prepared by the Advocate and also allow such other material which they may wish to produce before him in defence and after considering and dealing with the material so produced, he shall pass a reasoned speaking order. 8. In view of our findings, the appeals are allowed as remand for de novo adjudication. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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