9911796707
TMI Blog1981 (9) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ses against the orders of the Collector of Central Excise, Indore demanding duty on their clearances of rock phosphate during the period 1974-75 and imposing a penalty of ₹ 25,000/- on them under rule 173-Q of the Central Excise Rules. The Collector has held that the rock phosphate powder cleared by them during 1974-75 were classifiable as fertilisers and as duty had not been paid the duty w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for duty was also time-barred in terms of old rule 10. They were not guilty of any clandestine clearance and therefore, rule 173-Q could not also be attracted. They have also pointed out that the Collector has relied upon evidence which had not been disclosed in the S.C.N. and therefore, the orders are not tenable. 3. The appellants were heard in Delhi on 5-9-1981 through their Advocate. Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no clandestine removal and as in their case old rule 10 applied the demand for duty is clearly time-barred. The Deptt. had initiated enquiries in 1977 and when in April, 1978 the Asstt. Collector was satisfied that there was no case for demanding the duty all the papers were returned to them. At the time of adjudication they had asked for the Acts report but it was not given to them. 5. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 mesh, the Collector's orders demanding duty on clearances during that period are not tenable and may be set aside. There was also no justification for penalty in the absence of clandestine clearances. 6. The Board has considered the appellants' contentions. The Board observe that in the absence of any disclosure to the appellants that their two bills which described the goods as fertilise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat such a finding is not relevant. It would therefore, appear that there is no clear evidence available as to the fineness of the powder cleared by the appellants, during 1974-75. In view of all these factors, the Board finds the orders of the Collector to be legally untenable. In the facts and circumstances of the case the demand is also clearly time-barred. The Board therefore, allows the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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