1998 (2) TMI 320

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..... g under erstwhile TI 27. The officers also recovered four Exercise books lying in the manufacturing hall. The Exercise books contained entries relating to removal of aluminium circles of various thickness including dutiable sizes. 3.  On examination of the entries appearing in the Exercise book, it appeared that the appellants manufactured and cleared Aluminium circles of thickness, other than 0.56 mm to 2.00 mm thickness, weighing 31,126.350 kgs valued at Rs. 7,78,158.75 P and involving Central Excise duty amounting to Rs. 2,22,553.40 P. The Collector of Central Excise held that benefit of Notification No. 43/75-C.E., dated 1-3-1975 was not admissible to the appellants since they could not produce any documentary evidence in support .....

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..... lates that such aluminium in cut form must be made from old aluminium scrap, or waste or scrap made from virgin metal or virgin aluminium in crude form or combination of both on which appropriate duty has been paid. The notification further restricts this exemption to aluminium circles which are manufactured by producers who do not produce virgin aluminium from bauxite or from aluminia. It was submitted before us that appellants have an investment in plant and machinery to the extent of only Rs. 70,000/- and they are not capable of producing aluminium from bauxite or aluminium. Perusal of invoice from M/s. Bharat Aluminium Company Ltd., placed at page 51 indicates that these ingots have been removed on payment of duty. The Additional Collec .....

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..... inium or eligible to exemption on circles made out of such ingots. 8.  It is however, admitted by the learned Advocate that they had not filed any declaration nor had maintained any accounts. The learned Counsel submits that note books have not been seized nor shown to them. While we agree that any findings arrived at on the basis of such exercise books which were not seized cannot be sustained, we are of the view that this by itself would not affect the outcome of the case since we have held that circles as such would be eligible to exemption. This however does not absolve the appellants from the contravention resulting from non-accountal of goods or not making a declaration. In view of this, confiscation and redemption fine and pena .....

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