HELLOW MINERAL WATER (P) LIMITED Vs. CCE

JUDGEMENT

(1.) The appellants filed this appeal against the Order -in -Appeal passed by the Commissioner (Appeals). In this case, a demand of Rs. 5,29,699/ - was confirmed and a penalty of equal amount was imposed under Section 11AC.

(2.) The brief facts of the case are that the appellants are engaged in the manufacture mineral water and were discharging duty liability on fortnight basis. During the financial year, 2000 -2001, the appellants defaulted the payment of Central Excise duty more than two times. On this ground alone, the facility of payment of duty on installment basis was forfeited for a period two months by the Deputy Commissioner in view of the provisions of Rule 173G (1) (e) of Central Excise Rules. As per the order passed by the Deputy Commissioner, the appellants were directed to pay Central Excise duty on consignment basis and by making debit entry in their PLA. The appellants paid some duty through PLA and some duty they had paid through modvat account instead of making payment through PLA. A show cause notice was issued to the appellants and the demand was confirmed and the penalty was imposed on them.

(3.) The appellants are not contesting the payment of duty. The contention of the appellants is that the duty was paid even prior to issuance of show cause notice, therefore are not liable to pay penalty and relied upon the decision of the Tribunal in the case of Ashok Leyland Limited Vs. CCE, Chennai, 2003 (55) RLT 816.