1986 (1) TMI 218

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....s. Indore Bottling Company, manufactures aerated waters falling under Item I-D of the Central Excise Tariff. By virtue of Notification No. 80/80, dated 19-6-1980, as amended from time to time, the appellant firm was availing the exemption from Central Excise duty on first clearance of the specified goods upto an aggregate value of Rs. 7.5 lakhs in a financial year and in excess thereof was liable to duty. During the checking of accounts of production and clearance, it was observed by the Central Excise officers that the appellant firm had cleared aerated waters valued at Rs. 7,47,773.16 under Gate Pass No. 220 dated 1-4-1981 to Gate Pass No. 472 dated 19-5-1981. On 19-5-1981, the appellant firm cleared the goods valued at Rs. 5,038.16 and c....

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.... Being the peak season of their product, the other persons were also busy in other factory work. 4. On receipt of the show-cause notice, the appellant firm instead of filing a detailed reply to the said show-cause notice, addressed a letter dated 13-1-1982 to the Assistant Collector reiterating the stand which was already taken by them in their aforesaid letter dated 3-6-1981. The appellant firm was again asked to file a reply to the show-cause notice making it clear that if no reply is received within the given time, their letter dated 13-1-1982 addressed to the Assistant Collector would be deemed to be the reply to the show-cause notice. The appellant firm was further reminded on 5-3-1982, but no reply was received from them. Hence, th....

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....of any of the provisions of these rules, or (b) does not account for any excisable goods manufactured, produced or stored by him, or (c) engages in the manufacture, production or storage or any excisable goods without having applied for the licence required under Section 6 of the Act, or (d) contravenes any of the provisions of these rules with intent to evade payment of duty. **** (Emphasis supplied) 6. It is a trite law that guilty knowledge is not a necessary ingredient for an offence under Rule 173-Q(1) (a), (b) or (c), whereas it would be necessary in a case covered by clause (d) as held by this Tribunal in the case of Collector of Central Excise, Madras v. M/s. Ultramarine & Pigments Limited, 1986 E.T.R. 59. ....

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....ods are removed. We also find on record that the Inspector during the PBC checks had intimated the appellant firm that they were likely to exceed the full exemption limit and therefore they should make necessary arrangements. Despite this fact, the appellant firm did not make any necessary arrangements and effected clearance without payment of duty. The plea that due to the peak season for sale of aerated waters there were urgent requirements itself speaks a volume against the appellant firm. This plea itself indicates that the appellant firm removed the excisable goods in excess of the exemption limit with the full knowledge that they are committing an offence. Consequently, affirming the findings of the Adjudicating authority, we hold tha....