Factual finding on repaired colour picture tubes upheld; penalty under excise rules was not warranted on the record.

The Tribunal's factual finding that repaired colour picture tubes, and not new tubes, were supplied was upheld because the record showed dispatch under the prescribed challans, entries in the statutory register, and reversal of credit. The omission to mention identification marks and serial numbers in the challans was treated as insufficient to displace that finding, especially where such an allegation was not raised in the show-cause notice. The penalty under Rule 209A was therefore not warranted, and the appeal failed for want of a substantial question of law.

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Issues: Whether the Tribunal was justified in holding that there was no evidence to show that new colour picture tubes were supplied in place of defective tubes and, on that basis, in setting aside the penalty imposed under Rule 209A of the Central Excise Rules, 1944.

Analysis: The Tribunal found no tangible evidence to establish that new CPTs had been received instead of repaired CPTs. It also held that the goods were sent under the prescribed 57F(3)/(4) challans, entries were made in the 57F(4) register, and credit was reversed. The mere omission to mention identification marks and serial numbers in the challans was held insufficient to infer that no CPTs were sent for repair, particularly when such an allegation was not made in the show-cause notice. The Court found no reason to disturb this factual determination and also noted that the additional amount of Rs. 48,308 had already been paid and was not pressed before the Tribunal.

Conclusion: The finding that repaired CPTs, and not new ones, were supplied was upheld, and the penalty was not warranted. The appeal failed for want of a substantial question of law.

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