LAMA PRINTS SURAT Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner No. 1 the manufacture/processing is a partnership firm and petitioner No. 2 is a partner thereof. The petitioner firm is engaged in of man-made fabrics with the aid of power which falls under Tariff Item No. 22 of the First Schedule to the Central Excises and Salt Act 1944 The factory premises were visited for surprise check by the officers of the Central Excise Department on 13/09/1984 On verifying the books of account and other relevant records the officers found several irregularities and discrepancies.

(2.) The petitioner was served show cause notice and was called upon to show cause as to why excise duty amounting to Rs. 32 43 576 pst. should not be recovered on processed man-made fabrics measuring 60 48 662.5 Lmts. valued at Rs. 6 17 65 588 ps. The petitioner was also called upon to explain as to why the action mentioned in the show cause notice be not taken.

(3.) At the conclusion of the enquiry the Collector directed the petitioner to pay an amount of excise duty of Rs. 32 43 575 ps. (Rs. 31 12 560 ps. additional excise duty plus Rs. 1 31 8 ps. handloom cess). The Collector also imposed a penalty of Rs. 15 0 0 upon the petitioner. Against the aforesaid order passed by the Collector the petitioner preferred appeal before the Customs Excise & Gold (Control) Appellate Tribunal and challenged the legality and validity of the order passed by the Collector. The petitioner also applied before the Collector for dispensing with the pre-deposit of the amount of duty and penalty. The Tribunal imposed condition of pre-deposit of Rs. 20 0 0 (Twenty lacs) instead of depositing the entire amount of excise duty and penalty imposed upon the petitioner i. e. total amount of Rs. 48 74 584 ps. The petitioner has challenged the legality and validity of the aforesaid order passed by the Tribunal (Annexure K dated 7-12-1988).