RIMTEX INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE, BHAVNAGAR

JUDGEMENT

(1.) APPELLANT is engaged in the manufacture and clearance of Textile Machinery Parts used in the spinning mills. During the period from 5 -8 -2004 to 3 -6 -2005, the appellant cleared parts manufactured by them to EPCG Licence holders without payment of Central Excise duty on invalidation of EPCG licences. The department took -up investigations and in the impugned order, duty demand for Rs. 66,63,270/ - with interest has been confirmed and penalty of Rs. 15 Lakhs has been imposed on the first appellant namely M/s. Rimtex Industries and penalty of Rs. two Lakhs has been imposed on Shri Kalpeshbhai, partner, second appellant.

(2.) LEARNED advocate on behalf of the appellants submitted that the clearances were made under proper documents and with the knowledge of the department. In support of this contention, he drew our attention to various ARE -3 forms submitted by them and also to a letter of Assistant Commissioner, Surendra Nagar addressed to Assistant Commissioner, Jammu dated 13 -12 -2004, wherein he had requested for rewarehousing certificate. Further, he also submitted that the procedure followed by them and clearances without payment of duty was perfectly as per the law. In support of this contention he submitted following points :

(3.) LEARNED DR on the other hand reiterates the observations made in the Order -in -Original and submits that duty demand has been correctly made.