TMI Blog1988 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of such conductors they draw bare aluminium wires up to 9 SWG from duty paid aluminium wire rods and then use captively such bare aluminium wires up to 9 SWG for drawal of finer gauges, as required by their specification of bare aluminium wires, which in turn are used for the ultimate manufacture of electrical conductors. While using such bare aluminium wires up to 9 SWG for captive consumption for further manufacture of finished excisable goods as indicated above, the assessees did not pay duty on such bare aluminium wires during the period 20-2-1982 to 8-7-1983 as indicated in the show-cause notice dated 16-2-1984. We can now examine these facts in our discussion. 2. The learned counsel for M/s. Electrical Manufacturing Company put ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SR, AAC, EC wires, binding wire, plus other goods. Since wires thicker than 10 SWG were also EC wire, it is not explained in the adjudication order why this declaration was not sufficient. But if the central excise wanted every single gauge to be declared, then I can see no plausible reason why they should demand a disclosure only regarding manufacture of bare aluminium wire upto 9 SWG. They should require declaration of every gauge thicker than 9 SWG, because if we go by their logic, anything upto 9 SWG should be a subject of interest to them as it is a EC wire. 6. When they speak of declaration of bare aluminium wire upto 9 SWG, the answer is that there was no such wire. We must note that the factory did not declare even 10 SWG or fine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the suppression consisted of non disclosure of the information regarding manufacture of bare aluminium wire upto 9 SWG and then manufacture from such wire, aluminium wires of finer than 9 SWG which were ultimately used in the manufacture of electrical conductor, in the relevant classification list . This charge will not stand a moment s scrutiny. The relevant classification list does declare EC wire and this was accepted. The department does not charge the party with suppression for not declaring 10 SWG and finer wires but only concentrates on bare wires of 9 SWG. This is strange logic and carries little conviction. But there is an even stronger reason for my disbelief of the story of suppression and misstatement. 9. Everybody k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concealer; then only is he deceiving with motive to achieve unlawful and illegal profit thereby. It is not a cocnealment to fail to declare a fact well known, a fact that should be known to the other person because then the deception does not succeed. To succeed, the deception must keep the other person in the dark so that he acquiesces in and endorses an unlawful act thinking that it is lawful. When he approves the act in the full knowledge of the relevant particulars to it, he cannot, in good faith, claim he has been deceived; that he may fail to use his knowledge will not detract from this statement. 12. I am not able to accept that there has been deception, or that the central excise did not know about the inevitable fact of prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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