TMI Blog1996 (5) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared without payment of duty for the period 1981-82 to 23-3-1986 under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A of the Central Excises and Salt Act, 1944. The Collector also ordered for confiscation of 663 polished granite slabs under seizure, measuring totally 18,944.68 sq. ft. under Rule 173Q(1) of the Central Excise Rules, 1944 and given an option to redeem the same on the payment of a fine of Rs. 1 lakh. He has also ordered for confiscation of the land, building, plant, machinery, materials, conveyance and any other things used in connection with manufacture, production, storage, removal and disposal of the excisable goods under Rule 173(2) of the Central Excise Rules, 1944, but has granted redemption. He ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icraft items which are exempted from payment of excise duty by virtue of Notification No. 9/20/31-DDS/723, dated 25-5-1981. They also submitted that the goods which had been exported is not sustainable. They also pleaded that the demands were barred by time, as they had informed the department about the activity of the manufacture. The Learned Collector after careful consideration rejected all the pleas and held that the process of cutting and polishing of the granite stones amounted to manufacture and that the appellants had been clearing the same without observing the excise formalities and it amounted to mis-declaration and suppression of facts with an intent to evade the duty, hence duty was leviable thereon thereby contravening the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the appellants had informed the Inspector about the commencement of the processing of granite blocks in their factory. It has been stated in the letter that their local advisor had advised that such activity did not involve manufacture. The letter gives an intimation of the commencement of the activity. It also requests the Inspector to inform them a legal view and as to whether they have required to follow any particular procedure. It also states that if they done wrong or orally they show presumed legal and that they will act in accordance with such legal view. The Learned Advocate submitted that the appellants were under bona fide belief about the activity being exempted from levy of duty. It is his plea that the department was aware ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and polishing of granite stones amount to manufacture and excise duty is attracted in terms of the Tariff Heading invoked by the department. Such an activity does not come within the handicrafts as held by the Hon ble Supreme Court in the noted judgment. The only question left for determination is as to whether larger period is invokable in the present case. The Learned advocate has relied on the letter dated 17-5-1985 addressed to the Inspector. The letter has got seal of the Inspector and signature of some person. This letter has not been adverted to in the finding. The Learned DR has expressed a doubt about its genuineness and also submits that the appellants had not informed about their activity to the department. This aspect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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