I.J. Rao, Member (T)

1. The Collector in the order impugned before us demanded duty of Rupees 12.58 lakhs from the appellants (for the period from May 1985 to December 1986) confiscated four bundles of sheets, with an option for redemption, imposed a penalty of Rs. one lakh and confiscated the land, building and machinery with an option for redemption on payment of a fine of Rs. 20,000/-. The facts in brief resulting in the said order of the Collector are as under:

2. M/s. Lili Foam Pvt. Ltd. is a small-scale unit engaged in the manufacture of polyurethene foam. The appellant company commenced production some time in May 1985 though originally set up in May 1984. A team of Central Excise Officers visited the premises of M/s. Lili Foam Industries on 8-12-1986. Certain quantities of foam was found in excess of what was recorded in RG-1. The said quantities were seized by the visiting Officers. Also, certain accounts and documents were seized under a Mahazar on the same day. Statements were recorded from Shri G.H. Doshi, Managing Director on 8-12-1986 and also from some workers of the factory. Statements were also recorded from some of the customers. Based on the statements recorde