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TMI Blog2018 (6) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... d adjudication proceedings, were beyond the period of demand. This dispute is of 1992 vintage and in the last 25 years that have passed by, the matter has come up to the Tribunal on three earlier occasions which has resulted in the proceedings having been adjudicated on four occasions. The fact that the appellants could not produce satisfactory evidence of their claim in respect of the exempted clearances in all these proceedings leads us to the obvious conclusion that no such clearances would have taken place during the period of dispute - thus, there is no infirmity in the aforesaid conclusions of the adjudicating authority. Penalty - Held that:- he original Show Cause Notice dated 20.11.1992 and 31.08.1993 had alleged differential duty l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscated detergent cakes valued at ₹ 32,000/- and Van and gave an option to redeem the same on payment of fine of ₹ 20,000/- and ₹ 50,000/-. 2. Today when the matter came up for hearing, on behalf of the appellants, Ld. Advocate Shri S. Venkatachalam submits that the adjudicating authority has not considered their plea for reduction in the duty liability on account of some quantities of the LAB having been used for manufacture of cleaning powder without the aid of power, which is exempted from central excise duty. He also submits that the penalties imposed on the appellants are very much on the higher side compared to the duty liability arrived at and prayed that these penalties may be set aside. 3. On the other hand, L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 992 issued by the Superintendent of Central Excise, Pondicherry Range II directing them to discharge duty on scouring powder on provisional basis under Rule 9B of the Central Excise Rules, 1944 by executing a B-13 bond with security pending final order passed on sample powder. The samples were drawn by the Department vide the Test Memo mentioned therein to verify the correctness of the claim as this should have been the first time that such a declaration was made to the Department that they are manufacturing scouring powder. Anyway, the demand on SMSW is upto the period 31.03.1992 whereas the letter dated 17.11.92 is beyond the period of demand. (d) SMSW has also produced the Registration Certificate Sl. No. 23/92 dated 19.08.1992 showing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this score does not pass muster and is, therefore, rejected. 5.5. In the case of Aruna Industry, the appellant has contended that the LAB procured by trader, namely, M/s. Rama Balaji Traders, have also been added to the account of Aruna Industry and, hence, duty liability has been wrongly worked out on the higher side. The said appellant has contended that purchases made by the trader are not includible. We find that even this contention has been more adequately addressed by the adjudicating authority in para 11 of the impugned order as under: "The only issue to be decided is with regard to the includibility of the LAB procured by M/s. Rama Balaji Traders for working out the duty liability of M/s. Aruna Industry. From the work-sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is adopted by M/s Aruna Industry to suppress the production of Acid Slurry and clear the same clandestinely to M/s SMSW for manufacture of detergent soaps." The point to be borne in mind is that all said and done the traders under reference are traders only. There is no proof or evidence adduced by the notice that such LAB was not procured by him from the said traders. Interestingly, the notice did not plead for exclusion of Shanmuga Chemical and Moogambigai Chemicals before the Hon'ble Tribunal, which he is doing now before this forum. Therefore, I hold that inclusion of LAB purchased by the traders to arrive at the quantity of Acid Slurry manufactured and clandestinely removed by AI for the demand of duty requires no interference. I t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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