JUDGMENT

This appeal is preferred under S. 35-B of the Central Excises and Salt Act, 1944 against the Judgment and Order of the Customs, Excise and Gold Control Appellate Tribunal. The appellant-Triveni Rubber & Plastics - is a partnership firm. It established a factory for manufacturing tread-rubber. Production was started on 8-10-79. Tread-rubber was dutiable under Tariff Item 16-A(2) of the Schedule to the Act. At that time certain exemption notifications were in operation. According to the notification applicable to the year 1980-81, it is stated, a unit producing goods of a value of less than 5 lakhs was exempt from the provisions of the Act. The said exemption limit was raised to 15 lakhs for the year 1981-82.

2. On September 30, 1981, a search was conducted of the premises of the appellant by the officers of the Department. They found that a substantial quantity of tread-rubber (5807 kilograms) was removed from the factory without making an entry in the relevant records. They also recorded the statement of the Managing Partner of the factory in the presence of another partner. In this statement, the Managing Partner admitted not only that 5807 kgms. of tread-rubber was removed