- (1.) THE question that arises for consideration in this appeal relates to the manufacture, clearance and quantification of the product Kalogen Brill 3K and its valuation. Another issue which is raised pertains to under -valuation of the product known as Kalogen BL 3SL. The facts in brief are that the Respondent -Assessee herein who is the manufacturer of excisable goods falling under the erstwhile T.I. 68 and T.I. 14D of the Central Excise Tariff and declared their products in their classification lists as Kalogen BL 3SL under T.I. 14D chargeable to 30 per cent of BED plus 5 per cent SED and Kalso/Solvent KG under T.I. 68 at nil rate taking benefit of Notification No. 179/77 as the goods were manufactured without any aid of power. The Appellant/Revenue issued show cause notice to the Respondent dated 15 -8 -1985 on the ground that reports were received by the Superintendent, Central Excise (Anti -Evasion), Headquarters Pune, after visiting the Respondent -factory, to the effect that there were 7 barrels containing "Kalogen BL 3SL (Power form)" which were duly packed in Polythene bag weighing each 45 kg (net) found to be fully manufactured but not accounted for in the RG1 Register. It was also noticed that he 1st Respondent (hereinafter referred to as the 'Assessee') had not mentioned the stage of RG1 account for the finished products.
(2.) IT was also found that there was a stock of 63 Carboys containing Blue Chemical Liquid kept in wooden crates. On due enquiries being made from Shri H.R. Kasat, M.D. of KCPL it was told that those goods had been received by him from Bombay 4 to 5 days back by Tempo. They could however not produce any documents/vouchers/delivery challan/octroi papers, etc., in respect of the above goods. Hence the unaccounted 7 barrels containing Kalogen BL 3SL (Powder form) and 63 Carboys containing Blue Chemical liquid manufactured by KCPL in the factory were seized under panchanama for contravention of Central Excise Rules, 1944. On examination of the classification list/price list filed by the Assessee it appeared that the Assessee was manufacturing Kalogen BL 3SL and Kalsol/Solvent KG. The Assessee had classified Kalogen BL 3SL under T.I. 14D as a S.O.D. and had been paying duty @ 30% BED + 5% SED on Bed ad valorem and had filed a price list for the said product declaring the assessable value at Rs. 20/ - per kg.
(3.) AS regards the product Kalsol/Solvent KG, the Assessee had classified the same under T.I. 68 and had claimed full exemption from payment of Central Excise duty quoting Notification No. 179/77, dated 18 -6 -1977 as amended by Notification No. 74/83, dated 1 -3 -1983 contending that the said product was being manufactured without the aid of power. The classification list and price list appeared to have been duly approved of by the Assistant Collector, Central Excise, Pune IV, Division, Pune.;