KAMAR CHEMICALS & INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal has been preferred against the impugned Order -in -Appeal dated 31.5.2001 vide which the Commissioner (Appeals) has confirmed the Order -in -Original, in respect of confirmation of duty with equal amount of penalty under Section 11AC but reduced the redemption fine as detailed therein. The facts are not much in dispute. The appellants are engaged in the manufacture of Sulphuric Acid, Oleum, Ferric Alum and Non Ferric Alum. During the surprise visit to the unit of M/s. Industries and Chemicals on 28.7.99 by the officers of the Preventive Unit, it was noticed that 11750 kgs. of Ferric Alum was lying in the premises. On enquiry, it revealed that the consignment was manufactured and supplied by M/s. Kamar Chemicals and Industries Ltd., the appellants herein and the goods were not accounted by any excise documents. Consequently, the officers seized the goods and handed over to M/s. Industries and Chemicals for safe custody. On completion of investigation, the appellants were served with show -cause notice. They, in reply to that notice, accepted their mistake of having sent the goods without any duty paying documents.

(2.) THE adjudicating authority consequently, confirmed the duty demand of Rs. 64,364 with equal penalty amount under Section 11AC alongwith interest under Section 11AB and further ordered the confiscation of the plant and machinery under Rule 173Q with an option to get the same redeemed on payment of redemption fine of Rs. 10,000. The adjudicating authority also imposed penalty of Rs. 20,000 under Rule 173Q(2) and ordered confiscation of the goods with an option to get the same redeemed on payment of redemption fine of Rs. 5,000.

(3.) THE Commissioner (Appeals) has affirmed this order for modification of redemption fine in respect of plant and machinery and the seized goods.