Shri Milan Pakhira, Director of the Company gave a statement on that day saying inter alia that they were supplying overhead equipment and fittings for electric traction out of raw material purchased from outside and the goods were directly supplied to the railways.
30 lakhs.
The Company under took fabrication of such fittings for railway electrification companytractors on charging them fabrication charges where the companytractors themselves supply the raw material.
30 lakhs in the current financial year if the value of clearances during the preceding financial year did number exceed Rs.
89/79 dated 1.3.1979 and Notification number 105/80 dated 19.6.1980 which granted exemption to such articles upto Rs.
The Department, thereafter, ascertained the value of clearances of these goods for the past period 1979 80 to 1982 83 in the light of Notification No.
He also said the process under taken by them was melting of companyper aluminium and tin and the molten metal was cast in to moulds as per railway specification and that the material after casting was further subjected to operations such as fettling, grinding, dressing, machining, assembling wherever necessary with fasteners.
According to the Department, the Central Excise Officers visited their factory on 1.8.1983 on the basis of intelligence report that the appellants are manufacturing railway overhead equipment and fittings and were removing the same without payment of duty and demanded the records and documents relating to the manufacture, terms and companyditions of supplying the material to the railways.
making for liability to pay duty on the amount in excess of Rs.
30 lakhs.
The appellant company went up in appeal to the Tribunal.
it was found that on this basis, there had been less than Rs.
and also imposed penalty in the sum of Rupees one Lakh Under rule 1730 of Central Excise Rules, 1944.
30 lakhs clearances in 1980 81 and that the clearance during 1981 82 was Rs.41,64,574.43p.
42,06,178/ during 1982 83 had to pay duty without any exemption as the clearances during preceding financial year 1981 82 had exceeded Rs.
30 lakhs and also that their clearances of value of Rs.
J U D G E M E N T SEN, J. The facts of this case have been summarised by Customs, Excise Gold Control Appellate Tribunal CEGAT .
The appellant company manufactures railway overhead equipment and fitting for electric traction falling under Item 68 of the Central Excise Tariff.
