TMI Blog2001 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods and evasion of duty of Rs. 231,106/- thereon. The facts leading to the filing of the present appeal may briefly be stated as under : 2.The respondents were engaged in the manufacture of unwrought zinc ingots falling under sub-heading 7901.10 of the CETA. Their factory premises were visited by the Central Excise Officers on 25-2-1993. On checking the various records it revealed that they cleared 342 pieces of lead anodes without payment of duty of Rs. 2,31,106/- in a clandestine manner. There was also non-accountal of 1453.600 kgs. ingots in RG 1 Register as in the stock on physical verification. These ingots were found in excess than what were recorded in the RG 1 Register. It was also observed by the checking officers that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serves to be set aside. 6.On the other hand, the learned counsel has contended that the respondents were only fitting the headers in the lead sheets which were in the form of rods in order to suspend the sheets in the solution and that the process of electrolysis was being in fact carried out by the lead sheets alone and as such no new product was manufactured by them. Therefore, the lead sheets fitted with headers were classifiable only under Heading 7801 and not under 8543 of the CETA. Regarding the clandestine removal of the goods, the counsel has argued that mere non-accountal of the goods in the RG 1 could not lead to an inference that there was clandestine removal of the same and that even otherwise the non-accountal was duly expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of electrolysis, the lead and the aluminium sheets act as anode and cathode respectively. The header is required to be attached for ensuring that the sheet remained immersed in the electrolyte during the process of electrolysis. Since it is the aluminium and lead sheets which act themselves as electrodes, therefore, by attaching the header no new commodity known to the market came into existence and as such no duty was payable thereon after such attachment". The ratio of the law laid down in this case, fully covers the case of the respondents. Therefore, the Collector has rightly held the classification of the lead sheets under sub-heading 7801 of the CETA. 9.Even the Revenue had not stick to its earlier stand taken in the show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade out at appeal stage. This very principle of law has been laid down by the Apex Court in Prince Khadi Woollen Handloom Prod. Coop. v. CCE, 1996 (88) E.L.T. 637 (S.C.). 10.In the light of the discussion made above, the order of the Collector classifying the product in question under sub-heading 7801 of the CETA cannot be in any manner said to be illegal, invalid or contrary to law. 11.Regarding the non-accountal of 1453.00 kg. of zinc ingots in RG 1 Register, as alleged in the show cause by the respondents, on 24-2-1993 when the Central Excise Officers visited the factory, the Collector has recorded definite findings that no discrepancy was found in the raw material registers and the other registers and there was no material to sugges ..... X X X X Extracts X X X X X X X X Extracts X X X X
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