- (1.) Respondent-assessee, hereinafter referred to as the assessee , was a job worker and was engaged in the processing of fabrics falling under Chapter heading 54 & 55 of the First Schedule to the Central Excise Tariff Act, 1985 (for short the tariff Act ). Assessee had accepted the declaration filed by the merchant manufacturers who was supplying fabrics to the assessee and gave an undertaking that it would comply with all the requirements and discharge all the liabilities under the Central Excise Act, 1944 (for short the Act ).
(2.) As per notification No.254/87 as amended by Notification No.57/89 dated 1.3.1989, benefit of concessional rate of duty is available to a man made fabrics containing polyster below seventy percent. Assessee filed classification lists declaring the man made fabrics containing polyster below 70%. The said classification lists were approved by the Assistant Collector, Central Excise believing that the statement of the assessee given in the classification lists was true and correct.
(3.) Samples were collected from the assessee-company and they were got chemically tested which indicated that they were having polyster above 70% and thus would attract higher rate of duty and the assessee company had mis- declared the contents of the fabrics at the time of filing the classification lists with deliberate intention to evade payment of excise duty.;