HIMALAYAN PLASTICS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) These appellants are manufacturers of HDPE pipes falling under Chapter Heading 39.17 of the Schedule to the CETA 1985. During the period 1 -3 -92 to 28 -2 -94, this product was fully exempted from payment of duty of excise by virtue of Notification No. 14/92 -C.E., dated 1 -3 -92 which was rescinded by Notification No. 64/94 -CE., dated 1 -3 -94. The appellant were supplying HDPE pipes to the Telecom and other departments of the Government under rate contracts entered into between them and the Government. On 28 -2 -94 the applicants cleared certain quantities of HDPE pipes to the Government departments without payment of duty, claiming exemption under Notification No. 14/92 -C.E. ibid. The Inspecting Authority (Additional Director General, DGS&D, New Delhi) had duly inspected the goods before clearance thereof from the appellants' factories in terms of the rate contracts. However, it was only on 7 -3 -94 that the Inspecting Authority issued its inspection notes to the appellants. The Central Excise department took the view that the appellants were liable to pay duty @ 25% (tariff rate) on the goods as on 7 -3 -94 and accordingly, the department issued show cause notices to the appellants. The original authority confirmed the demands of duty against the appellants and imposed penalties on them. The duties involved in the cases of M/s. Himalayan Plastics Ltd. and M/s. Plato Polymers Ltd. are Rs. 1,83,597/ - and Rs. 1,62,942/ - respectively. The penalties imposed on them are Rs. 30,000/ - and Rs. 25,000/ - respectively.

(2.) Aggrieved by the decision of the original authority, the appellants preferred appeal to the Commissioner (Appeals) but the latter did not give any relief to the appellants. Hence the present appeals by the appellants.

(3.) Heard both sides.