M/S PUNJAB WIRE Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) HEARD the learned Advocate for the appellants and learned DR for the respondent. The appellants challenge the order dated 29.11.2004 passed by the Commissioner (Appeals) Chandigarh. By the impugned order, the appeal which was filed by the appellants before the Commissioner (Appeals),was dismissed for non -compliance of the requirement of Section 35F of the Central Excise Act, 1944.

(2.) THE appellants are engaged in manufacture of various items of iron and steel classifiable under chapter sub -heading 7217.90, 7313.00, 7312.10 and 7314.00 of the Central Excise Tariff Act, 1985. Alleging that the appellants were misutilising SSI exemption under Notification No. 9/2000 -CE dated 1.3.2000, a show cause notice came to be issued to the appellants on 19.11.2001 calling upon the appellants to show cause as to why an amount of Rs. 5,96,511/ - for the period 1.10.2000 to 31.3.2001 should not be ordered to be paid.

(3.) THE proceedings were contested by the appellants. However, the adjudicating authority by its order dated 5.12.2003 confirmed the demand to the tune of Rs. 5,96,529/ - while holding that the appellants were availing cenvat credit and was paying duty @ 8% in terms of Rule 57AD(2)(b), though the clearance of the goods was governed by rule 57 -AB(ic) of the Central Excise Rules. Being dissatisfied, the appellants carried the matter before the Commissioner (Appeals) wherein while rejecting the application for stay, the appellants were directed to deposit the entire amount demanded under the original order alongwith the penalty of Rs.1 lakh. The appellants did not deposit the said amount and consequently the impugned order came to be passed.