1995 (4) TMI 173

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....ondent. [Order per : V.P. Gulati, Member (T)]. - This appeal is against the order of the Collector of Central Excise (Appeals), Trichy. Under the impugned order the lower appellate authority has confirmed the duty demand of Rs. 44,499.34 in respect of the yarn which was not accounted for by the appellants and also a penalty of Rs. 10,000/- levied on the appellants by the original authority. ....

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.... but records were kept with reference to the weight arrived through a formula with reference to the counts. He fairly conceded that in regard to the defective weighing scale and the tare weight, the appellants did not produce any substantive evidence that over a period the scale as such was defective and that tare weight as taken into consideration was not uniform. He pleaded that in the normal co....

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....rn for error in spinning sampling and testing of such yarn for the purpose of assessment of Central Excise duty. [CBE & C letter F. No. 261/18/85-CX. 6, dated 14-5-1987 page 52.23 of the Tariff]" No trade notice or any circular has been produced by the learned Counsel in support of his plea. 3. The learned DR for the department has pleaded that the learned lower appellate authority h....

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....at some tolerance in the manufacture of cotton yarn is permitted by the authorities. This tolerance, it has to be seen is only to allow margin for the purpose of assessment of the yarn of a particular count as there is likelihood that when machines are adjusted for manufacture of a particular count of cotton yarn the production that emerges may not be exactly of the same count but may vary for a p....