VIJAY TANK AND VESSELS PVT LTD Vs. COLLECTOR OF C E

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Central Excise, Calcutta-ll dated 16.10.1985 imposing a duty of Rs. 32,44,767.04 and a penalty of Rs. 25 lakhs on the appellant.

(2.) The appellants manufacture metal containers (falling under Item 46 of the Central Excise Tariff) from the steel supplied by the Indian Oil Corporation. Proceedings were instituted against them by issue of a show cause notice dated 4th February, 1985 on an allegation that between May 1979 and August 1984 they manufactured and cleared metal containers by deliberately not declaring the value of metal containers, by not taking into consideration the correct cost of metal sheets used in the manufacture of such metal containers and by wilfully suppressing the documents and relevant particulars for arriving at normal prices and also wilful misstatement of facts, which eventually culminated in the present impugned order now appealed against.

(3.) SHRI Jain, the learned departmental representative submitted that his records also reveal that RT 12 assessments have been finalised till July, 1981 and the appellant had paid the differential duty. The learned D.R. on further scrutiny of the communication of the Supdt. dated 31.12.1985 evidencing finalisation of RT 12 assessment of the appellant till June, 1983 accepted and conceded the same. The learned D.R. urged that inas-much as the impugned order has been passed pursuant to the show cause notice dated 4.2.1985 when the very assessments upto June 1983 were only in a provisional stage, the order may be set aside keeping the rights of the department intact leaving it open to the department to take such action against the appellant as deemed fit necessary under law, if the appellant is found of clearing the goods clandestinely.