LAWS(CE)-1994-2-71

SYNTEX PROCESSORS Vs. COLLECTOR OF CENTRAL EXCISE

Decided On February 03, 1994
Syntex Processors Appellant
V/S
COLLECTOR OF CENTRAL EXCISE Respondents

JUDGEMENT

(1.) THE above appeals arise out of the order of the Additional Collector of Central Excise, Chandigarh confiscating certain quantities of processed man -made fabrics seized in transit and from certain other premises, levying duty on the processed man -made fabrics alleged to have been removed clandestinely by M/s. Syntex Processors and imposing penalties on all the appellants herein.

(2.) THE facts of the case are as follows : M/s. Syntex Processors is a Partnership firm engaged in the processing of man -made fabrics on job work basis in their Unit at Amristar. On 8 -5 -1987 officers of the Central Excise Department intercepted a Matador van found to be carrying 160 pieces of processed man -made fabrics and enquiry from the driver and other occupants who were the employees of Syntex Processors revealed that the Malador had left the factory premises of Syntex Processors the same morning after loading the fabrics which were seized in the absence of any accompanying gate passes. The Matador was also seized after recording the statements of the driver and the other occupants. The Department conducted physical verification of the entire balance stock of fabrics in the factory premises of Syntex Processors from 8 -5 -1987 to 11 -5 -1987 and found a shortage of 12757 metres of fabrics. They also seized 216 pieces of man -made fabrics found in excess of the statutory balance. Statements of Partners of Syntex Processors were recorded. On the same date the Departmental officers visited the premises of one M/s. Rami Tex where they recorded the statement of its partner to the effect that M/s. Rami Tex had sent grey fabrics under the challan dated 25 -4 -1987 to Syntex Processors through M/s. Simplex Trading Company, a sister concern of Syntex Processors and that some processed man -made fabrics found in the premises of Rami Tex were out of the fabrics sent to Syntex Processors which had been returned after processing without cover of any gate passes. The Partner of Rami Tex also deposed that they had received further quantity of processed fabric without valid duty paying documents which had already been disposed of by them. The Departmental officers visited the business premises of another trading concern viz. M/s. Amrit Lal Subhash Chander and seized certain processed fabrics from there on the basis of the statement of the Partner of the trading concern of receipt after processing from Syntex Processors without gate passes. In the course of visit to the premises of Simplex Trading Company, processed man -made fabrics were seized therefrom on the ground that they had been cleared from Syntex Processors clandestinely without payment of duty.

(3.) SHOW cause notices dated 6 -11 -1987 and 19 -1 -1988 were issued regarding goods seized in transit and seized thereafter from various business premises and proposing confiscation of the same, levy of duty and imposition of penalty. The adjudicating authority passed the following order :