1985 (11) TMI 174

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....-12-1982, Inspectors of Central Excise visited the factory premises of M/s. Ultra Marine and Pigments Ltd., respondents herein, and verified the stock and accounts. They noticed that 19 different items, details of which are set out in the order of the Deputy Collector (Gold) dated 12-5-1983 in C. No. V/15AA/15/1/82 Cx. Adj II, were kept in the working hall of the factory in a fully packed condition and ready for dispatch and that they had not been accounted for in the statutory R.G. 1 account. Examination of some of the packages and cartons showed that some of the goods had been packed in 1/82, 4/82, 6/82, 8/82 and 12/82; and in some cases packing slips were found with dates of packing as 4-9-1982, 24-11-1982 and 9-10-1982. The goods were s....

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....s under Rule 173(b) and (d) vide Order C. No. V/15AA/15/1/82 CX Adj II dated 12.5.1983 (Annexure B). When the matter was taken up in appeal, the Collector of Central Excise (Appeals) found that there had been a practice of entering the goods manufactured in the R.G. 1 account at the point of their storage in the bonded storeroom, the practice of which the Department was aware and perhaps allowed to continue because the Department was not able to determine the R.G. 1 stage for organic surface-active agents. Hence, he held that the respondents had not contravened Rule 173G(4) with any willful intention to evade payment of duty. He also felt that Rules 173G(4) and 53 should not have been invoked simultaneously and so too with Rules 173Q and 22....