TMI Blog2009 (4) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-99 for the period 1-4-2001 to 28-2-2002 and exemption in terms of Notification No. 17/2002-C.E., dated 1-3-2002 for the month of March, 2002 and thus cleared 10,53,085 Kgs of tea without payment of duty. On perusal of the Green Leaf weighment Register for the year 2000-2001, it was noticed that the assessees had received green leaf from four major tea leaf agents namely (i) Mr. Jacob George, (ii) Mr. K.P. Mohamed, (iii) Mr. V.S. John and (iv) Mr. Arulraj. The assessees also raised vouchers against each agent s name and made payments in the form of cheques. It was also noticed that the list of small growers (growers possessing 10 hectares of land or less, under tea cultivation), with name, address, area of cultivation of tea with survey nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey Nos., total extent of holdings as per the certificate of the Revenue Officials etc. before buying leaf from the small growers; and that they were making payments to the growers only through the transport agents. The department was of the view that the appellants had not placed acceptable evidence on record to show that 19,00,452 Kgs of green leaf had been actually purchased from the small growers and further, vouchers and cheques had been raised in the name of the agents and payments made directly to agents and therefore, it was alleged that the assessees had deliberately contravened the provisions of law as they had cleared excisable goods namely processed tea, without payment of duty, as they had not fulfilled the conditions for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is probable that they have been cultivating crops other than tea. The demand as raised on the noticees was confirmed together with interest and a penalty of equal amount was imposed on the appellants. Hence this appeal before the Tribunal. 5. We have heard both sides. 6. Notification No. 41/99-C.E., dated 26-11-1999 is reproduced herein below :- Tea Exemption In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description specified in column (2) of the Table below falling under sub-heading No. 0902.00 of the First Schedule to the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) In the event of his failure to satisfy the undertaking, the manufacturer shall be liable to pay duty of excise specified in the First Schedule to the said Central Excise Tariff Act for the period referred to in condition (b) II. Tea cleared by a factory belonging to a co-operative (a) The benefit of exemption from duty will commence from society during any financial year subsequent to 1999-2000 the date of the undertaking with the Assistant Commissioner/Deputy Commissioner of Central Excise as specified in condition (b) :- (b) The manufacturer files an undertaking that :- (i) The green leaf used by the factory during the period, from the date of the aforesaid und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom growers, each having a holding not exceeding ten hectares under tea cultivation. (ii) The factory has been working for at least six months during 1998-99. (c) In the first week of April, 2000, the manufacturer shall submit a statement of accounts, in a format to be prescribed by the jurisdictional Commissioner of Central Excise, as proof of having fulfilled the undertaking. (d) In the event of his failure to satisfy the undertaking, the manufacturer shall be liable to pay duty of excise specified in the First Schedule to the said Central Excise Tariff Act for the period referred to in condition (b). IV. Tea cleared by a bought leaf factory during any financial year subseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f processed by it in the preceding financial year from any grower who has a holding not exceeding ten hectares of land under cultivation of tea. Notification No. 17/02-C.E. dated 1-3-2002, which is the successor notification to the above, is reproduced herein below : Tea, tea waste Effective rates of duty In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 to 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the good falling under heading No. 09.02 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon which is specified in the said First Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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