TaxTMI 
TaxTMI 
1995 (11) TMI 165
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....acts of the case in brief are that on 29-9-1981 at about 17.00 hrs, the Central Excise Anti-Evasion Officers of Delhi Collectorate Hqrs., New Delhi intercepted one Tempo No. DHL-7845 loaded with Latex Foam Articles falling under Item No. 16A(1) of Central Excise Tariff, near the factory of M/s. Khanna Rubbers, 220, Piragarhi, Delhi. On demand, the driver of the said tempo produced one hand-written proforma Invoice No. 80-81/108, dated 29-9-1981 for Rs. 5,521.00 issued by M/s. Khanna Rubbers in favour of M/s. Goverdhan Dass and Sons, Rajouri Garden. In order to verify the genuineness of the document accompanying the consignment, the Central Excise Officers immediately visited the factory premises of M/s. Khanna Rubbers. The factory was found....
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.... the value of Rs. 5,521/- were also seized on the ground that they had been removed from the place of manufacture without accountal in the simplified register and were not accompanied by a regular bill. In a follow-up action, the business premises/godown of the following firms were searched on 30-9-1981 and Latex Foam Articles of the total value of Rs. 33,000/- lying with them and manufactured in and removed from the factory of M/s. Khanna Rubbers without proper accountal in the Daily Stock Account Register were placed under seizure, since the said firms could not produce any document showing the lawful procurement of the same : - (i) M/s. Khanna Foam Sales, 341, Panchkuin Road, New Delhi. Rs.2,550.00 (ii) M....
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....ory premises of M/s. Khanna Rubbers and those removed in the intercepted tempo as well as those seized on 30-9-1981 from the business premises godown of M/s. Khanna Foam Sales and M/s. Gopal Narain & Sons, of the total value of Rs. 80,922/- are liable to confiscation under Rule 173Q ibid. Besides, seized tempo No. DHL-7845 valued at Rs. 45,000/- approx. used in the transportation of contraband excisable goods, which was released to M/s. Khanna Rubbers provisionally on 1-3-1982 on their execution of E-11(Sec.) Bond of the face value of Rs. 45,000/- alongwith security of Rs. 5,000/- is also liable to confiscation under Section 115 of the Customs Act, 1962. Further, Central Excise duty amounting to Rs. 2,49,175.72 (BED Rs. 2,37,310.21 and SED ....
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....Act and Rules in addition to demanding duty of Rs. 2,49,175.72 from the appellants M/s. Khanna Rubbers on latex foam articles valued at Rs. 5,75,297.50. Further he ordered for confiscation of latex foam articles of the total value of Rs. 80,922.00 lying in stock at the premises of M/s. Khanna Rubbers, M/s. Khanna Foam Sales and M/s. Gopal Narain & Sons and the goods found in transit on 29-9-1981. However, he gave option to appellants M/s. Khanna Rubbers to redeem the goods on redemption fine of Rs. 25,000/-. 6. Shri L.P. Asthana, ld. Advocate appearing for the appellants submitted that appellants M/s. Khanna Rubbers were manufacturers of latex foam articles and were availing benefit of Notification No. ....
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....o 29-9-1981 invoking larger period. He also attempted to show the electricity bills and project scheme for manufacture of latex foam published by the Development Commissioner, Small Scale Industries as additional evidence to show that appellant's unit had no capacity to manufacture latex foam articles of a value of Rs. 13,25,297.50 as held by the Collector. He submitted in the facts and circumstances, the department has no case either for demanding duty or for taking penal action. 7. It was contended on behalf of the Revenue that show cause notice was issued within six months from the date of seizure and further period of limitation is not applicable as the issue relates to offence. He submitted that belated retracted statement of V....