M. K. Mukherjee J. - (1.) This appeal under Section 35L of the Central Excise and Salt Act, 1944 ('Act' for short) is directed against the order dated June 7, 1985 passed by the Customs, Excise and Gold (Control) Appellate Tribunal ('Tribunal' for short) in Appeal No. ED(SB)A 104/84.C. Facts leading to and relevant for disposal of the appeal are as under.
(2.) On January 30, 1983 a team of Central Excise (Preventive) Officers of Bulsar Division paid a surprise visit to the factory premises of M/s. Grovel Chromates, a division of M/s. Grauer and Weil (India) Ltd., Bombay, the appellant herein, situated in Plot No.407, G.I.D.C., Vapi. They found that the appellants, who are engaged in the manufacture of Sodium Bichromate (falling under Item No. 14AA of the First Schedule to the Act) under a valid licence, had removed their product, on payment of Central excise duty and under gate passes, for captive consumption to their Chromic Acid Section situated adjoining to their manufacturing premises, for the manufacture of Chromic Acid flakes. The officers further found that those flakes (falling under TI 68) were manufactured with the aid of power and were removed under delivery challans of the appellants without payment of duty. The Officers detained 98 drums containing 4,900 kg. of Chromic Acid flakes lying in the Chromic Acid section for making further enquiry into the matter. On a subsequent visit on February 2, 1983, the Officers seized 126 drums of Chromic Acid flakes (which included the 98 drums detained earlier) in fully manufactured condition weighing 63,000 Kgs. and valued at Rs. 1,89,000/- on the reasonable belief that the goods were liable to confiscation as the appellants were not entitled to exemption from duty under Notification No. 46/81 dated March 1, 1981. The goods were provisionally released to the appellants on their executing requisite bonds.
(3.) In due course a notice was issued to the appellants on July 14, 1983 charging them with contravention of Rule 173F read with Rule 9(i), Rule 173B, Rule 173C, Rule 173G(2) read with Rule 52A. Rule 173F(4) read with Rule 53 of the Central Excise Rules, 1944 and they were asked to show cause why penalty should not be imposed on them, why the goods seized and subsequently released provisionally should not be confiscated and why they should not be called upon to pay duty on 1,52,950 Kgs. of Chromic Acid flakes valued at Rs. 44,95,475.00 illicitly manufactured and cleared by them during the period of September, 1981 to January, 1983.;