COMPUTER AID Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) IN this appeal, the appellants have challenged the order of the Commissioner of Central Excise confirming a demand of duty and imposing penalty under the provisions of the Central Excise Act, 1944 (CEA) and also confiscating goods of foreign origin, with option for redemption thereof on payment of redemption fine, and imposing penalty under the provisions of the Customs Act, 1962.

(2.) THE brief facts of the case are that the Central Excise officers, who visited the appellants' premises on 15 -7 -1994 and searched the premises, found that the party was engaged in the manufacture and sale of computer sets falling under Chapter Sub -Heading 8471.00 of the Central Excise Tariff without necessary registration with the Central Excise Department and without observing other necessary formalities under the CESA and the Rules thereunder; that the appellants were also found to have engaged in the purchase and sale of various computer accessories of foreign origin without any documents evidencing legal import and possession of such goods; that the officers seized such computer accessories of foreign origin on the reasonable belief that the same were liable to confiscation under Section 111 of the Customs Act; that the officers resumed various documents relating to manufacture and sale of computer sets to various buyers; that the proprietor of the appellant -firm, in his statement dated 3 -8 -1994, admitted manufacture and sale of computer sets and accessories thereof since September, 1992 without obtaining Central Excise registration; that the documents resumed from the appellants' premises revealed that they had sold computer sets to different buyers; that, on the basis of the evidence gathered by the officers, the party manufactured and sold 15 sets of computers valued at Rs. 5,77,495/ - involving Central Excise duty to the tune of Rs. 86,624.25; that it appeared that the computer accessories seized by the officers were liable to confiscation under Section 111 of the Customs Act in the absence of documentary proof of licit import and possession of such goods; that the Department, by show -cause notice, proposed to recover the aforesaid duty amount of Rs. 86,624.25 on the clearances of 15 computer sets effected clandestinely during the period September, 1992 to 15 -7 -1994, under Rule 9(2) of the Central Excise Rules read with the proviso to Section 11A(1) of the CESA and, further, proposed to impose penalty on them under Rule 173Q of the Central Excise Rules; that the Department, by the show cause notice, further proposed to confiscate the seized goods under Section 111 of the Customs Act and impose penalty on them under Section 112 of the Act; that the appellants contested the show cause notice and that the Commissioner adjudicated the dispute as per the order impugned in the present appeal.

(3.) WE have carefully examined the impugned order and connected records. We have also heard learned Advocate, Shri A.P. Mathur for the appellants and learned SDR, Shri K. Srivastava for the respondent.