1998 (7) TMI 237

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....ed upon the second applicant, Shri S.K. Srivastava, Vice President of the Company in terms of Rule 209A of the Central Excise Rules. 2. Briefly stated the facts of the case are as under :- The appellants are engaged in the manufacture of cotton yarn in cross reel hanks. During the period in question i.e. October, 1994 to April, 1996, the appellants cleared the said goods to registered Co-operative Societies by availing the exemption benefit of Notification No. 26/94-C.E., dated 1-3-1994 and subsequent Notification No. 25/95, dated 16-3-1995. The department has denied the benefit of the said Notification to the appellants on the ground that the buyers i.e. co-operative societies who have purchased the goods from the appellants, ha....

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....en made by their banker by debiting bank accounts maintained by the co-operative societies. Reference has also been made to the certificates issued by the bank which are to the effect that bank draft/pay orders have been issued by them under the instructions of co-operative societies and by debiting the bank account maintained by the said societies. All the papers, he submits, were placed before the adjudicating authority, who is not denying the said facts. However, the benefit has been disallowed only on the technical ground that payments instead of being made by cheques have been made by the bank drafts and as such there is a violation of condition of the Notification. 4. Countering the arguments, ld. JDR, Shri S.N. Ghosh, appeari....

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....n connection with the two societies. While admitting that the certificates issued by the bank in these two cases, it is not clearly mentioned that the demand drafts have been made by debiting bank account of the societies, he contends that the certificates of the societies clearly mentioned that the said demand drafts have been issued by the bank from their own funds. He submits that the language used by the bank is not in the hand of the societies and varies from banker to banker. No adverse inference can be drawn from the language used in the certificate issued by the bank. Especially, there is nothing to rebut the certificate issued by the co-operative societies. 6. We have considered the submissions by both the sides. We find th....