- (1.) Heard Sri B.K. Raghubansi, learned counsel for the applicant/department and Sri S.D. Singh, learned senior advocate assisted by Sri Rishi Raj Kapoor, learned counsel for the respondent-assessee.
(2.) In this central excise reference, following questions of law has been referred by the Tribunal at the instance of the Central Excise Department, for opinion of the High Court: "1. Whether demand of duty under Section 11-A for extended period on excisable goods manufactured and sold without informing the department/taking Registration Certificate is justified or not. 2. Whether penalty imposed on person solely responsible for evasion of duty by suppressing fact is correct in law or not. 3. Whether penalty equivalent to duty evaded is correct or not in terms of Section 11-AA of the Central Excise Act, 1944. 4. Whether interest on duty not paid is chargeable under Section 11-AB of the Central Excise Act or not."
(3.) Briefly stated the facts of the present case are that the respondent is engaged in manufacturing of shampoos. His business premises was visited by a team of Central Excise Preventive Officer, Moradabad on 16.9.1996. During the course of checking it was found that the respondents were engaged in the manufacturing of excisable goods (shampoo) since the year 1989. They manufactured shampoos in various brand names, namely (i) Dena Ji Brand Satritha shampoo, (ii) Dena Ji Brand Harbal shampoo (iii) Dena Ji Brand Neem shampoo. These goods were being sold in plastic bottles of capacity 1000 ml, 500 ml, 300 ml, 280 ml, 150 ml and 100 ml. The department found the preparation of these shampoos as meant for use on hair and classifiable under chapter heading No. 3305.90 and subsequently under chapter heading no. 3305.99 of the Central Excise Tariff Act, 1985 and, therefore, liable to central excise duty at the rate applicable from time to time. Statement of Sri Ajai Kumar Gupta, Manager of the unit of the respondent was recorded, who inter alia stated that the unit was registered with the Uttar Pradesh Khadi and Gram Udyog Board and they had no central excise liability on these products. The respondents have neither filed any declaration nor applied for central excise registration. The respondent also took the stand that their product is not shampoo but an ayurvedic liquid soap. Certain quantity of final products (shampoos), found during the course of checking, were seized.;