K. Prakash Anand, Member (T)

1. In this case, the department alleges that on the basis of intelligence collected, the Hqrs. Preventive staff visited the appellant's factory on 13-7-1982 and found that they were engaged in the manufacture of fuel injection pipes and lubricating pipes falling under Item 68 of the Central Excise Tariff (hereafter CET). Their enquiries revealed that in the manufacture of such pipes, they used nuts for fitting the same at both ends. Threaded as well as unthreaded nuts were being purchased by them from different parties. So far as unthreaded nuts are concerned, they were subjected to further processes to convert them into threaded nuts and then they were used for captive consumption. Some 1,08,495 pieces of nuts valued at Rs. 43398/- were found to be in stock. They were detained on 20-7-1982 allegedly for manufacturing a product falling under Item 52-CET without obtaining a Central Excise licence and clearing them without payment of Central Excise duty thereon.

2. A Show Cause Notice was issued to the appellants for manufacture without Central Excise Licence of 15,97,333 pieces of nuts falling under Item 52-CET with the aid of power during the period