CHANAKYA PLASTICS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Since the issue lies on a short compass, I take up the stay petition as well as the appeal together for decision as per law.

(2.) This appeal is directed against the Order -in -Appeal No. 79/2002 (M -II), dated 22 -7 -2002 by which the learned Commissioner has confirmed the demand of duty of Rs. 24,292/ - on the clearance of milling machine without payment of duty and also penalty of Rs. 28,000/ - imposed on the appellant under Rule 173Q of the Central Excise Rules.

(3.) Appearing on behalf of appellant, Smt. S. Anuradha, Proprietrix submitted that the moment their mistake of non -payment of duty was pointed out to them on 24 -3 -2000, they had paid the same on 29 -3 -2000 within a period of 5 days from the date of pointing out in the Mahazar and much before the issue of show cause notice which was issued on 6 -8 -2001. She, therefore, submitted that in view of CEGAT judgment rendered in the case of Amritsar Crown Caps (P) Ltd. v. CCE Chandigarh, reported in 2002 (140) E.L.T. 437 (T -Del.), no penalty can be imposed on them, if they had paid duty before the issue of the show cause notice. Since they had paid the duty almost 1 1/2 years before issue of the show cause notice on immediately it was pointed out to them in the mahazar, she submits that the order imposing penalty of Rs. 28,000/ - under Rule 173Q may be set aside.