1990 (4) TMI 128

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....ter manufacture are found to be of lesser quality than required and are degraded. Then they are sold as tyres for camel drawn carts mostly used in the deserts of Rajasthan. Such sales are made through dealers of the appellants. It is also gathered that such degradation and sale as animal drawn vehicle tyres is rare for obvious reasons. 2. Notification No. 229/82-CE as amended exempts tyres for animal drawn vehicles (ADV) from payment of excise duty. 3. On 15-4-1983, in pursuance of certain alleged information, the Central Excise Officers detained a vehicle carrying excisable goods manufactured by the appellants. Investigations were undertaken and ultimately a show cause notice was issued on 3-6-1983/7-6-1983 asking them to show cause ....

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....et aside. 5. Shri Chakraborty, the learned DR opposing the arguments submitted that as can be seen from the records of the case the gate pass accompanying the consignment mentioned only 4 sizes of the tyres. But the Central Excise Officers found 16 sizes out of which only two sizes matched the gate pass description. Referring to the Collector's orders the learned representative submitted that there was no information regarding degradation of the tyres and the Collector gave a finding that good aero tyres were being cleared as ADV tyres to save excise duty. He emphasised that the actual use of the tyres is immaterial for the purpose of Notification No. 229/82 which prescribes that the tyre should be designed for use as ADV tyres. Shri Cha....