TMI Blog1976 (7) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... r clearances in a financial year were covered by the exemption from whole of the duty granted under Govt. of India Notification No. 158/71-C.E., dated 26-7-1971. The licence was renewed on the same basis for the years 1972 and 1973. It expired in terms of Rule 158 of the Central Excise Rules, 1944 on 31-12-1973 as the appellants did not apply for its renewal for the year 1974 in terms of Rules 175 and 176 of the said Rules even upto 7-8-1974, i.e. upto the date of visit of the Central Excise Officers to their factory. The appellants had, however, continued to manufacture the excisable nuts, bolts and screws in 1974. According to the Deptt., the appellants had contravened the provisions of Rule 174 of the Central Excise Rules, 1944 read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on confiscated goods as well as the goods already cleared during the material time. 4. In the appeal, the appellants do not dispute the legal position. Their contention is that the only real contravention on their part is regarding non-renewal of the licence for 1974 which is minor technical contravention. The other contraventions are the result of this non-renewal and should not be viewed seriously because the question of deliberate evasion of Central Excise duty was not involved in the case. They had always been in the exempted sector and during the material time their clearances were well within the exemption limit of ₹ 5 lakhs allowed under Notification No. 155/71-C.E., dated 26-7-1971. Had they renewed their licence for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any licence. The manufacture after 1-4-1974 upto the time a fresh licence was granted to them has to be treated as manufacture without a licence attracting provisions of Rule 173-Q. 6. The Board, however, finds that there is substance in the appellant s contention that they were working well within the exemption limit of ₹ 5 lakh during the material time and would have been eligible for the exemption had they got renewed their licence for 1974, in time. The quantity of clearances ascertained by the Collector supports this contention. The Board is of the view that the exemption did not become inapplicable by the fact that the licence was not renewed during a certain period. The Board accordingly orders that the benefit of the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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