1989 (10) TMI 175

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....e order of the Collector of Central Excise dated 26-9-1988 confiscating HDPE bags/sacks manufactured and cleared by the appellants (redemption fine of Rs. one lakh in lieu thereof has been imposed) and imposing penalties on the appellants. 4. The brief facts of the case are as follows :- M/s. Kamath Packaging Pvt. Limited, situated at Yeshwanthpur, Hubli, Bangalore North Taluk (hereinafter referred to as Unit-I) was licensed for the manufacture of HDPE tapes, sacks, bags, fabrics and laminated fabrics. Duty was being paid on HDPE tapes, sacks and bags from 1986 and HDPE fabrics were being cleared free of duty of the manufacture of sacks/bags. During the period of manufacture from May, 1986 to October, 1987 Unit-I generated a large qua....

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....ent of central excise duty. In addition to confiscation of the goods he also imposed penalties on both the Units. It is against this order that the appellants have now come up in appeal before us. 6. We have heard Shri Shunmugasundaram, learned Consultant for the appellants and Shri Chandrasekharan, ld. SDR for the Department. 7. We notice that the show cause notice itself proceeds on the basis that the goods in question are waste namely, HDPE circular bag waste and laminated fabric waste. The annexure to the show cause notice also speaks of cut-pieces of damaged laminated fabrics and damaged waste bags. It is seen from the impugned order also it proceeds upon the basis that the goods are waste material. The Collector holds that the a....