NATIONAL CABLES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) APPELLANTS herein are manufacturers of Submersible Winding Wires. Wires manufactured by them are having ISI specification. In order to satisfy the ISI standard these wires have to be subjected to rigorous tests. The tests include 7 day air oven ageing test. For one day the wires have to be submerged in water and electrical current of 3000 volts to be passed through. After this submersion test it has to be dried and subjected to further test before affixing ISI marking. To get final product, rigorous tests for about 10 days is required.

(2.) OFFICERS of the Excise Department visited the factory of the appellants on 12 -4 -1996 at about 11 A.M. At that time they found submersible winding wires in various stages of its production. On the ground that the appellant did not enter the quantity which reached the marketable stage in the RG 1 register, proceedings were initiated for violating the rules regarding maintenance of register. Since no finished products were removed from the factory, no duty was imposed on the manufacturer, the appellant. On the ground of having violated the rules in not maintaining proper register, Submersible Winding Wires measuring 513.160 Mts. valued at Rs. 12,64,396 were confiscated under Rule 173Q of the Central Excise Rules, 1944. These confiscated goods were permitted to be redeemed on payment of redemption fine of Rs. 5 lacs. For contravening the provisions of Rule 53 of the Rules, a penalty of Rs. 4 lacs was also imposed on the appellant under Rule 173Q. Aggrieved by the order of the adjudicating authority in the above terms, appeal was preferred to the Commissioner (Appeals). By Order -in -Appeal No. 36 -CE/MRT/99, dated 22 -1 -1999 the appeal has been dismissed. Hence the present appeal.

(3.) APPELLANT is manufacturing Submersible Winding Wires. Before marking the same they have to be tested as per standard prescribed by the Bureau of Indian Standard. The testing takes nearly 10 days. Air oven ageing test takes seven day. Then water immersion test for a day, wherein the insulated wire is submerged in water and electrical current of 3000 volts is passed through. This is so done for finding out the strength of insulation. Only thereafter the wire has to be dried for packing and removal from the factory. Only after the testing is over and ISI marking is pasted in the final packing, can it be sold to dealers or removed from the factory. During this period of testing, according to the appellant, his factory will be having no marketable goods. During that period no entry can be made in RG 1 as prescribed under Rule 53 of the Rules. Manufacturers got sanction from the concerned authorities way back in 1987 to resort to that course in maintaining RG 1 register. The declaration filed pursuant to the permission granted by the Commissioner was made available to me at the time of hearing of this appeal. For a proper understanding of that I read the same :