1993 (6) TMI 144

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....iod from 24-7-1985 to 6-1-1986 when exemption notification 70/85 dated 17-3-1985 was rescinded by Notification No. 174/85 dated 24-7-1985, confiscating the goods with  an  option  to  redeem  the same on payment of a fine of Rs. 2,000/- and imposing a penalty of Rs. 25,000/-. 2. The brief facts of the case are that on 7-1-1986 the Preventive Officers of Central Excise Division Agra visited the factory of the appellants who are holders of L 4 Licence for the manufacture of PVC soles classifiable under T.I. 36(2) of the Schedule to the erstwhile Central Excise Tariff. On physical verification of the stock lying in the factory it was noticed that 400 pairs of PVC soles valued at Rs. 5,600/- were not accounted for in....

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....enlarge the scope of the show cause notice by invoking the larger period of 5 years limitation which was not the subject matter of the original proceedings. The appellants also submitted that the goods manufactured and cleared during the period in dispute were not removed clandestinely but were cleared in good faith for want of knowledge of Notification 174/85 which rescinded the earlier notification granting exemption from payment of duty on such goods. The adjudicating authority confirmed the duty demand under Section 11A read with Rule 9(2), confiscated the seized goods under Rule 173Q with an option to redeem the same on payment of Rs. 2,000/- and also imposed a penalty of Rs. 25,000/-. Hence this appeal. 3. We have heard Ms. Savita ....