CCE Vs. BHARAT ROLLING MILLS

JUDGEMENT

(1.) THE Respondents were manufacturers of Mild Steel Round Bars and Strips. During 2002 -03, they were availing exemption under notification 8/2002 -CE dated 01 -03 -2002 providing exemption for SSI units.

(2.) ON 24 -01 -03, the department conducted a verification of stocks and entries in their books of accounts. The officers found excess of 83.204 MTs of MS Bars not accounted in the books of accounts. The department was also of the view that the Respondent had crossed the exemption limit of Rs. One crore prescribed in the notification 8/2002 -CE when clearances for the period 01 -04 -2002 to 24 -012003 were considered. The department was also of the view that M/s Balajee Steels and M/s J.K. Steels, two trading units, were involved in the sale of goods clandestinely cleared by the Respondent. A show cause notice was issued proposing

(3.) AGGRIEVED by the said adjudication order the parties filed appeal with Commissioner (Appeals) who vide his order dated 31 -03 -09 held that the duty demand against the Respondents is not sustainable and therefore he set aside the duty demand from the Respondents and also penalties imposed on all the parties. Further the Commissioner (Appeal) also held that that the seizure itself was bad in law and therefore set aside the confiscation, redemption fine and penalty. Aggrieved by the finding that the seizure was bad in law Revenue has filed this appeal. It is to be noted that there is no appeal against the finding that the Respondents had not crossed the exemption limit on the date of the verification and there is no duty to be demanded from the Respondents.