CCE Vs. FENNER (INDIA) LTD.

JUDGEMENT

(1.) These three appeals filed by the Revenue are directed against Orders -in -Appeal No. 1100/94 (MDU) dated 25.11.94,27 and 28/95 (MDU) dated 17.4.95 passed by the Collector of Customs and Central Excise (Appeals) Trichy by which he has allowed the appeals filed by the assessee with consequential relief. The original authority had held that duty is demandable on the bells drawn as samples in excess of three metres in length for technical test. The issue involved in all these appeals are same and hence all these appeals and the cross -objections were taken up together for disposal according to law,

(2.) The brief facts of the case are that the respondents assessees are manufacturers of V and Fan belts falling under chapter heading 40 of the schedule to the Central Excise Act, 1985. At the relevant time viz, 1/92 to 12/92, they were eligible to draw samples of the said goods not exceeding 3 metres in length free of duty for technical test purposes in terms of SI. No. 2 of the Table to Notification No. 184/72 CE dated 12.8.72 as amended subject to certain conditions. On verification of the finished product testing register, it was noticed that they had at times drawn such samples exceeding three metres in length for such test. In the circumstances show cause notice was issued demanding duty and the show cause notice culminated in the order of adjudication passed by the Assistant Collector demanding duty on the belts drawn as samples in excess of three metres in length for technical test, under Section 11A of the CE Act 1944. On appeal before the Collector (Appeals), the appeals were allowed with consequential relief. Aggrieved by the said order in appeal, the Revenue has come in appeal on the following grounds:

(3.) re defective is devoid of merits since the test of bonding evenness of various elements in the belts said to be undertaken may not prove worthy of defective belts.