COOLADE BEVERAGES LTD., GOLDEN Vs. CCE

JUDGEMENT

(1.) These are appeals challenging an order passed by Commissioner of Central Excise dated 28.9.2001. The first appellant is the manufacturer -assessee. The second appellant is the holding company of the first appellant and also the bulk buyer of the first appellant's product, namely flavoured ready syrup (FRS). The appellants (3) to (5) are officers of the first appellant company.

(2.) The dispute arising in these appeals relates to valuation of flavoured ready syrup (FRS) of Thumps Up and Coca Cola brands of aerated waters manufactured by the first appellant. Order impugned was passed pursuant to a show cause notice 26.3.98 invoking the extended period of limitation under proviso 11A(1). The period covered by the show cause notice is from 31.12.94 to March 1997. Under the impugned order the Commissioner confirmed duty demand of Rs. 30,49,200 imposed penalty of Rs. 10,28,469 on the first appellant under Section 11 -AC and a further amount Rs. 1,50,000 under Rule 173 -Q(1). The first appellant is made liable to pay interest under Section 11 -AB from 28.9.96 to 17.3.97. The land, building, plant and machinery were directed to be confiscated under Rule 173 -Q(2) and a redemption fine of Rs. 1,00,000 was imposed. A penalty of Rs. 2,00,000 was imposed on the second appellant and penalty @ Rs. 50,000 each on appellants (3) and (4) and a penalty of Rs. 25,000 on the 5th appellant under Rule 209A of the Central Excise Rules.

(3.) The three issues raised in the show cause notice that (a) the first appellant and second appellant are related persons (b) the exclusion of rent on durable/returnable containers and (c) cost of transportation in excess of the actuals were found against the assessee in the order impugned. In the present appeals detailed contentions are taken on merits of each of the issue. At the same time the appellants would submit that the show cause notice dated 26.3.98 is barred by limitation and on that ground alone the impugned order is to be set aside.