CCE Vs. G.P. PRESTRESS CONCRETE WORKS

JUDGEMENT

(1.) BEING aggrieved with that part of the impugned order of Commissioner(Appeals), vide which he has set aside the penalty imposed upon the Respondent under Section 11AC of Central Excise Act, 1944, by Additional Commissioner as also the interest while confirming the demand of duty of Rs. 23,32,615/ - (Rupees Twenty Three Lakhs, Thirty Two Thousands, Six Hundreds and Fifteen Only), Revenue has filed the present appeal.

(2.) AS per facts on record, the Respondents are engaged in manufacture of Prostheses Concrete Poles, falling under Chapter 68 of Customs Excise Tariff Act, 1985. During the relevant period, the goods were being supplied to Gujarat State Electricity Board by availing SSI exemption Notification No. , dt.1.3.03. The said notification provided Nil rate of duty on clearance up to Rs. 1 crore subject to the condition that total aggregate clearance from the manufacturer 's factory would not exceed Rs. 3 crores in the previous year.

(3.) THE Respondents did not contest the duty confirmation and, in fact, paid the same. However, they challenged the imposition of penalty before Commissioner (Appeals) on the ground that they were under a bonafide impression that SSI exemption allowed duty free clearance of Rs. 3 crores in a financial year. They also submitted before Commissioner (Appeals) that as the duty stand paid by them before issuance of show cause notice, no penalty is imposable under Section 11AC, in terms of law declared by the Larger Bench in the case of CCE Delhi v. Machino Montell (I) Ltd., 2004 (62) RLT 709 (CESTAT -LB). The appellate authority accepted the above contention and set aside the penalty imposed upon the Respondent. He also set aside the interest. Hence, the present appeal.