1994 (9) TMI 154

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....ants herein and found the factory engaged in the manufacture of woollen knitted hosiery cloth in tubular form from woollen yarn with circular knitting machines. The Excise Officers also found some woollen yarn and woollen jerseys in semi-finished condition. On visual examination, the woollen yarn appeared to be containing more than one sixth by weight of nylon contents, classifiable under Tariff Item 18-B(ii). Sh. Jagdish Rai, proprietor of the factory, stated that the yarn was a blended yarn but he did not know its composition. He was not able to produce any bill/ voucher or Central Excise gate pass covering the yarn in question. The woollen yarn/woollen jerseys in semi-finished condition and woollen knitted hosiery cloth were seized in th....

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....ever, since the goods had been released provisionally before adjudication, he appropriated bond amount of Rs. 20,000/- towards redemption fine. In addition, he confirmed a duty demand of Rs. 15,705/- and Rs. 1,48,079.25 P and imposed a personal penalty of Rs. 20,000/-. Hence this appeal. 5. We have heard Shri Mohinderjeet Singh, learned Advocate and Shri M.M. Mathur, learned JCDR. Shri Mathur fairly concedes that duty liability on the seized goods cannot be fastened upon the appellants who are admittedly not manufacturers of the yarn and that penalty, for the same reason, cannot be imposed in terms of the relevant rules upon the appellants. He however, contends that Rule 173-Q is attracted to the facts of the case as the appellants ....