1997 (12) TMI 340

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....R, for the Respondent. [Order]. -  A duty demand of Rs. 81,900/- has been confirmed on the ground that the appellants manufactured 13 Air conditioners out of 13 compressors found short on 9-5-1991 when the Central Excise officers visited the factory premises of the appellants and cleared the Air conditioners without payment of duty. In addition, a penalty of Rs. 25,000/- has also been i....

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.... with a remark 'Returned with the remarks with a request to send compressors after sometime as we do not have replacement compressors or on receipt, we will inform you'. The Collector has rejected this defence for the reason that subsequent enquiry on 11-2-1994 that M/s. Carrier Aircon had revealed that no air-conditioners were sent to them for removal of defects. 3. The learned Counsel, S....

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.... the time, the enquiry findings are mentioned in the impugned order. He further submits that shortage of raw material cannot form the sole basis for coming to the conclusion that final product using such raw materials had been manufactured and cleared without payment of duty. In support of this contention, he cites the Tribunal's order reported in 1997 (93) E.L.T. 177 (Tribunal) = 1996 (17) RLT 65....

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....based upon the letters dated 30-4-1991, 8-5-1991, the department instead waited till the appellants had submitted their reply to the show cause notice and then carried out the enquiry, the result of which was not communicated to the appellants, and which only finds a place for the first time in the impugned order. The entire case of the department is made out on this basis, namely shortage in raw ....