TMI Blog1995 (3) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... without obtaining Central Excise Licence and cleared the goods from the place of manufacture without issuing gate passes, without maintaining proper Central Excise records and without payment of Central Excise duty. Accordingly, the show cause notice was issued. In reply to the show cause notice they have accepted the factual position that they have manufactured the goods without payment of duty but defended their action on the plea that the manufactured goods have all been exported which could be cleared for export without payment of Central Excise duty under Rule 13 or on payment of duty under Rule 12 of the Central Excise Rules, 1944 which duty was refundable to them. In either case no duty was accruable to the Government on the Garment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tently taking the view that the demand of duty was not justified wherever the goods have been exported even without obtaining licence as it was only technical violation and there was no loss of revenue. He referred to a series of decisions including following decisions in support of his contention. 1. Collector of Central Excise, Guntur v. Binny Ltd., Madras - 1987 (31) E.L.T. 722 (Tribunal). 2. Collector of Central Excise, Chandigarh v. M/s. Jain Steel Rolling Mills. Order No. A/53/89-NRB, dated 13-2-1989. 3. American Dry Fruits Stores v. Collector of Central Excise - 1992 (61) E.L.T. 709 (Tribunal). He contended that the goods were exempted prior to 1-3-1986 and further on 16-11-1988 the Government of India issued a notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical breach and required to set aside the penalty as there was no intention to evade payment of duty and in fact, no duty has been evaded. 4. While countering the arguments Shri Mohan Lal, learned JDR submitted that it is not a mere technical lapse but gross violation of provisions of the Central Excises Salt Act as well as Rules in committing number of offences as much as not obtaining licence but manufactured the goods and cleared without payment of duty and without following the procedure as prescribed under the Excise Rules. Entitlement of rebate on exports is not an automatic but subject to fulfilment of conditions as prescribed under the provisions of the Rules but same has not been followed by the party. He contended that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been actually exported by condoning the procedural lapses on the ground that they were only technical breaches and as there was no loss of revenue as it was rightly argued by the appellants. Following the ratio of the aforesaid decisions, we hold that the demand of duty was not justifiable as the goods have been actually exported in this case and the goods cleared for home consumption was negligible. But as regards penalty there is some force in the arguments advanced by the Departmental Representative that persons should not be allowed to go scot free who have shown scant respect to law and contravening the provisions of the Central Excises Salt Act and relevant Rules. Giving credence to the submissions made by him, we find that imposi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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