TaxTMI 
TaxTMI 
1990 (10) TMI 206
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....f Central Excise Tariff and they seized a quantity of 2600 kg. of starch gum found in the factory for action under Central Excise Rules for having manufactured and cleared excisable goods without payment of duty and without following Central Excise formalities. A statement was also given on that day by Shri Sushil Garg, Managing Director saying that they have been manufacturing starch gum since 1982 and had not obtained any Central Excise licence. After further investigation, proceedings were initiated by issue of a Show Cause Notice dated 16-1-1986 alleging that the appellants had been manufacturing modified form of starch which is used as an adhesive for industrial purposes without obtaining Central Excise licence and clearing it without ....
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....y case the appellants began using power in the manufacture of the goods only from 1-8-1984 as evidenced by letter dated 3-10-1986 from DESU confirming that electricity connection was given only on 1-8-1984. There were also receipts for payment of electricity bills for the period as further evidence. The ld. Consultant urged that the Collector has brushed aside this evidence and has relied upon the statement of Sushil Garg which was not directly on this issue and the Collector's finding in this regard is based on presumption and no evidence. Hence, even if duty is demandable, it should be only from 1-8-1984 when their unit became power operated. Further, it was also pleaded that there has been no suppression of facts as even the duty demand ....
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....dity having separate commercial identity from the starch and dextrine that has gone into its manufacture. As has been observed by the Supreme Court in the case of Laminated Packings v. CCE -1990 (49) E.L.T. 326 (SC) "that the goods belong to same entry is also not relevant because even if the goods belong to the same entry, the goods are different identifiable goods, known as such in the market." Therefore, it has to be held that the goods manufactured by the appellants are covered by description of Item 15C of Cx. Tariff, which reads as follows: "Item No. 15C - STARCH Item No. Tariff Description Rate of duty 15C Starch (including Dextrin and other forms of Modified Starch), all sorts, in or in relation to the manufacture of" which a....