1988 (6) TMI 256

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.... the present appeal) were called upon to show cause why duty amounting to Rs.1,29,447.38 should not be demanded from them inasmuch as they were not eligible for duty concession under Central Excise Notification No. 80/80, dated 19.6.80 since their total value of clearances had exceeded the prescribed limit of Rs. 15 lakhs. By reply dated 20.10.83, the respondents contested the notice. The Assistant Collector found that there were no clearances of the ''specified goods" (i.e. goods specified in the notification as eligible for duty exemption) in 1981-82. Production was commenced in June, 1982. The aggregate value of clearances of the specified goods during 1982-83 was Rs. 24,32,551.78. Therefore, in accordance with para 5 of the notification....

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.... record showed that the assessments were provisional, Shri Dev, for the respondents, submitted that it was only on 13.12.82 that the Assistant Collector directed that "pending approval of the said classification lists the goods cleared in the past and in future shall be provisionally assessed to duty under Rule 9B of the Central Excise Rules, 1944". On 27.12.82, the Assistant Collector directed execution of a bond in terms of Rule 9B. On 18.1.83, the respondents replied that the question of executing a bond did not arise because they would be paying full duty on clearances exceeding Rs. 15 lakhs. It was also submitted that the Department was fully in the know of things and hence any question of clandestine clearances did not arise warrantin....

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....ntral Excise Rules. On 6.1.83, the Superintendent called upon the respondents, in pursuance of the Assistant Collector's directions, to execute a B.13 bond for Rs. l lakh and 25 thousands. He also indicated in the letter that the price-lists and classification lists were approved only provisionally. In reply to this letter, the respondents wrote on 18.1.83 to the Superintendent that the question of execution of a bond did not arise and that in view of the fact that their clearances had exceeded Rs.15 lakhs, it would not be justifiable to call upon them to execute a bond for the quantities already cleared from the factory. It was further indicated that they would be paying full statutory rate of duty on their exceeding 15 lakhs and the quest....