CCE Vs. JAMNA AUTO INDUSTRIES LTD.

JUDGEMENT

(1.) Heard both sides

(2.) Brief facts of the case are that respondents are engaged in the manufacture of Leaf Spring and Stabilizer. On 27.8.97 the Officers of the Revenue Department visited the factory of the respondents and on verification, it was found that there were shortage of finished products valued at Rs. 9,83,498. During verification it was also found that respondents had received the additional amount of Rs. 39,96,514 from M/s. Maruti Udyog Ltd. towards clearances effected to M/s. Maruti Udyog Ltd. in addition to the amount indicated in the invoice. A show cause notice was issued for demand of duty amounting to Rs. 1,47,525 in respect of the finished products found short and duty amounting to Rs. 5,99,477 in respect of additional amount received from M/s. Maruti Udyog Ltd.

(3.) The adjudicating authority confirmed the demand and imposed equal amount of penalty. On appeal filed by the respondents, the Commissioner (Appeals) allowed the appeal and held that since the appellants deposited the amount in question before issuance of show cause notice, therefore, the respondents are not liable for any penal action.