TMI Blog1990 (7) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... urai dated 24-12-1987, have been filed for waiver of pre-deposit of duty of Rs. 51,037.50 and a penalty of Rs. 1500/- on petitioner M/s. Arul Match Works and Rs. 5000/- on petitioner M/s. Premier Matches under the provisions of the Central Excise Rules, 1944. 3. Shri Shivaji, the Learned counsel for the petitioners submits that in respect of the same units in pursuance of an order of adjudication came to be passed on 12-3-1987 which has been appealed against before this Tribunal and the appeals numbered as E/285, 286, 287 and 288/87 are pending. In those appeals the petitioners took out an application for waiver of pre-deposit of duty of Rs. 4,70,450.40 and the Tribunal by its order dated 27-7-1987 in S/Order No. 227/1987 directed the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny concessional rate of duty under Notification No. 22/82 and clearances of matches and the entire manufacturing activity has taken place only in Premier Matches and the other match factories did not manufacture and clear matches. On 30-12-1985 the Supdt. of Central Excise visited the premises of the above match factories and all these match factories are in the same compound and one Shri Manoharan is the proprietor of Premier Matches who has been nominated the power of attorney by the other match units. The said Manoharan was managing all the units and was maintaining the records. The Inspecting Authorities on 30-12-1985 indicated that in Arum Match Factory the oven, hot plate, levelling plate and dipping plate were covered with dust and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered by Shri Manoharan. Shri Manoharan asserted that all the four match units are represented by him as power of attorney and are having essential equipment for independent production of matches and stated that day-to-day account showing payment of wages to labourers and receipt of raw materials were not maintained as wages to the labourers were settled then and there. The authorities issued a show cause notice dated 26-6-1986 inter alia calling upon the appellants of Premier Matches as to why the benefit of Notfn. No. 22/82 for the financial year 1985-86 be not denied and as stated therein why the differential duty in respect of the matches cleared from 1-4-1985 to 7-5-1985 and also for the period 8-4-1985 to 31-3-1986 should not be dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that manufacturing activity was going on in all the units. Even Shri Manoharan, the power of attorney has only asserted even at the earliest stage that all the units were independent units and were manufacturing and clearing matches. The learned counsel also urged that even the mahazar witnesses deposed that they did not see the equipment but merely signed the mahazar at the request of the officers. The learned counsel also placed reliance on the ratio of the ruling of the Bench in the case of Moorthy Match Works and Ashok Match Works v. Collector of Central Excise covered by Order No. 120/88 dated 22-3-1988; in more or less similar situation the Tribunal, in the absence of clinching circumstantial evidence and in the absence of any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pection at periodical intervals. This aspect was put to the learned D.R. who, after due verification, accepted that such clearances were allowed from the various match units by the authorities, as evidenced by the statutory registers. The extracts of these registers have also been filed by the appellants and form part of the records. To avoid duplication we are not verbatim reproducing the same, since the Department is not disputing the fact that the extracts represent the entries in the statutory registers duly signed by departmental authorities periodically relating to the clearances from the appellant s factories. Therefore, when the statutory authorities themselves in the statutory registers have put their signature evidencing clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciate as to why that during investigation no statement from any of the worker was recorded at all. As stated above the entire charge of the Department is sought to be proved merely on the basis of certain circumstantial evidence which also stand disproved by the very evidence in the form of statutory registers signed by the departmental authorities themselves. At any rate we would like to note that no statement was recorded from the suppliers of the raw materials or from the buyers of the matches from the units to ascertain as to whether the dealings or the supply of the raw materials of the parties was with one unit or they were in fact having trading in units in the other units also. The proceedings being penal in nature, the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
