TIRAP VENEER AND SAW MILLS Vs. COLLECTOR OF C EXCISE
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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T.P. Nambiar, Member (J) -
(1.) THIS is an appeal filed by the appellants against the orders passed by the Additional Collector of Customs and Central Excise, Shillong in Order No. 3/Addl. Collr./Plywood/CE/90, dated the 23rd Jan., 1990.
(2.) In terms of that Order, she confirmed the demand of duty of Rs. 3,96,121.08 (basic) and Rs. 19,806.06 (Special) for the period September, 1983 to September 24,1985 under proviso to Section 11A of the Central Excises and Salt Act, 1944. She also imposed a penalty of Rs. 5,00,000/- on the appellant under Rule 173Q of Central Excise Rules, 1944.
The brief facts of the case are that based on the intelligence gathered to the effect that the appellants having their factory and registered office at Miao (Arunachal Pradesh) are engaged in the manufacture of plywood of different grades are evading Central Excise duty by wilful mis-statement and suppression of material facts and mis-declaration of prices and mis-classification of products, the Central Excise officers on 24-9-1985 searched the factory premises of the appellant and seized certain documents. On scrutiny of the seized records such as individual gate passes/challans/sale bills issued from the factory, it was found that 100% of the products have been sold ex-factory to the different wholesale buyers.
(3.) IT is the case of the department that on further scrutiny of the seized records, it was revealed that the appellants adopted dubious methods of clearing the various commercial plywood of average grades in the guise of super-ply-m (maximum defective) grades. IT was also found by the officers that there was a confidential letter written by M/s Woodcraft Products Ltd., who is one of the wholesale buyers of the appellants company which made it clear that the goods of higher value were cleared by the appellants as maximum defective grades and thereby they evaded Central Excise duty. The details of production of different grades of products of the appellants company from the date of manufacture i.e. June 1983 to August, 1985 as annexed in the Annexure 'B' to the Show Cause Notice is as follows :-
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