1981 (9) TMI 282

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....appeal from M/s. Sadhna Enterprises against the orders of the Collector of Central Excise, Indore demanding duty on their clearances of rock phosphate during the period 1974-75 and imposing a penalty of Rs. 25,000/- on them under rule 173-Q of the Central Excise Rules. The Collector has held that the rock phosphate powder cleared by them during 1974-75 were classifiable as fertilisers and as duty ....

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....for demanding duty. The demand for duty was also time-barred in terms of old rule 10. They were not guilty of any clandestine clearance and therefore, rule 173-Q could not also be attracted. They have also pointed out that the Collector has relied upon evidence which had not been disclosed in the S.C.N. and therefore, the orders are not tenable. 3. The appellants were heard in Delhi on 5-9....

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....as fertilizers. 4. There was no clandestine removal and as in their case old rule 10 applied the demand for duty is clearly time-barred. The Deptt. had initiated enquiries in 1977 and when in April, 1978 the Asstt. Collector was satisfied that there was no case for demanding the duty all the papers were returned to them. At the time of adjudication they had asked for the Acts report but it....

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....during 1975 were of 150 microns or 100 mesh, the Collector's orders demanding duty on clearances during that period are not tenable and may be set aside. There was also no justification for penalty in the absence of clandestine clearances. 6. The Board has considered the appellants' contentions. The Board observe that in the absence of any disclosure to the appellants that their two bills ....