MAHABIR ENGG. WORKS Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants are aggrieved with the order in Original No. 12/C.E./85, dated 25 -3 -1985 passed by the ld. Collector of Central Excise and Customs, Chandigarh. By this order, the ld. Collector has held that the appellants are liable to pay duty under Rule 9(2) of Central Excise Rules, 1944 of a sum of Rs. 3,20,695.98 leviable on 883.400 m.t. of channels manufactured and cleared during the period 1 -8 -1980 to 31st July, 1981 and also a personal penalty of Rs. 50,000 under Rule 173Q of Central Excise Rules, 1944 for contraventions of provisions of Rules 9(1), 52A, 53,173G, 173F, 174 and 226 of Central Excise Rules, 1944.

(2.) THE allegation made out in the show cause notice dated 5 -11 -1983 is that during the course of a visit to the appellant's factory premises situated near ESI Corporation office, Jullundar on 18 -6 -1983, the preventive staff observed that the appellant had cleared Iron Channels (other than slotted channels) falling under Tariff Item No. 26AA(ia) of the first schedule of the Central Excises and Salt Act, 1944 weighing 883.460 m.t. during the period 1 -8 -1980 to 31 -7 -1983 without obtaining Central Excise L4 licence, without having got approved classification list, without issue of gate -pass and without payment of CED amounting to Rs. 3,20,695.98 and without observing other necessary formalities under Central Excise laws.

(3.) IT is alleged that the said goods were manufactured from flat iron purchased by them from the market/other manufacturers upto December 1982 and thereafter from flat iron received by them from their sister concern situated near Canal bridge, Kapurthala Road, Jullundar and partly purchased from the market/other manufacturers with the help of rolling mills installed in the party's premises. It is further stated that these flats (2 mm to 10 mm in thickness) so received were heated in muffle furnace with the steam coal as fuel, to an extent of 600C to 700C and then fed in the rolling mills (i.e. two rollers fitted in two stands and run with 15 BHP Motor) working with the aid of power and the resultant goods so manufactured were of 6 ft. to 14 ft. in straight length of 't' shape and cleared as it is to various parties without payment of duty.