VIJETA TEXTILES Vs. COMMISSIONER OF C. EX., AHMEDABAD

JUDGEMENT

(1.) M /s. Vijay Textiles (M/s. Vijay) is engaged in processing of textile fabrics commonly known as Interlining Cloth, Book -Binding Cloth, Mosquito Nets etc.

(2.) ƒThe factory premises were searched on 1 -10 -01 by the officers of Central Excise. During the course of search, the records relating to different firms carrying the name of M/s. Vijay Textiles, M/s. Vijeta Textiles (M/s. Vijeta), M/s. Ganibhai Jamalji Dewdiwala, M/s. Tulsi Textiles etc. were found in the factory premises. Shri Yunusbhai S. Dewdiwala, Partner of M/s. Vijay stated that M/s. Vijeta was also functioning from a part of the same factory compound for manufacturing Book -Binding Cloth. A total quantity of 49,200 LMtrs of Interlining fabric, 13,440 LMtrs of Book -Binding Cloth was seized during the search operation. After investigation, two show cause notices were issued. First show cause notice was issued on 19 -3 -02 and second show cause notice was issued on 11 -3 -03, proposing duty demand on different types of fabrics from M/s. Vijay and duty of Rs. 1,54,870/ - was also demanded from M/s. Vijeta. Thereafter, adjudication proceedings were completed which resulted in impugned order, wherein the learned Commissioner confirmed the demand of duty of Rs. 1,54,870/ - from M/s. Vijeta, with interest and equal amount of penalty under Section 11AC of Central Excise Act, 1944 (the Act). Further, he also confiscated the seized Book - Binding fabric and ordered release of the same on payment of redemption fine of Rs. 50,000/ - in lieu of confiscation. Further, penalty of Rs. 50,000/ - was also imposed on M/s. Vijay, in connection with the duty being on Book -Binding Cloth. Further, the learned Commissioner confirmed demand of Rs. 20,51,369/ - on Gauze fabrics and also imposed penalty of Rs. 20 lakhs under Rule 173Q of Central Excise Rules, 1944. He dropped the demand of Central Excise duty amounting to Rs. 50,48,230/ - on Interlining Cloth/Coated fabrics falling under Heading No. 52.07 and also vacated the seizure. No penalty was imposed on the two partners of M/s. Vijay.

(3.) REVENUE is in appeal aggrieved by the decision of the learned Commissioner to drop the demand in respect of Interlining Cloth/Coated fabrics and also lifting of the seizure. Further, the Revenue is also in appeal against dropping of penalty against the partner. M/s. Vijeta are also in appeal against the decision of the Commissioner for confirmation of demand in respect of Book -Binding Cloth and Gauze fabrics and also imposition of penalty. Since all the appeals arose from a common order, all of them are taken up together and a common order is being passed.