COMMISSIONER OF CENTRAL EXCISE Vs. MAHAVISHNU CYLINDERS

JUDGEMENT

(1.) REVENUE filed the present appeal against the impugned Order -in -Appeal No. 53 & 57/2008 (M -IV) dt. 28.11.2008 passed by the Commissioner (Appeals).

(2.) THE brief facts of the case are that the respondents were registered with Central Excise Department for manufacture of LPG Cylinders falling under Chapter 7311 of CETA'85 and were supplying the same to M/s. Indian Oil Corporation Ltd. through a open tender. The respondents opted for SSI exemption for the financial year 2005 -06 under Notification No. 8/2003 and cleared the goods at 'Nil' rate of duty and on crossing the SSI exemption limit, they cleared the goods on payment of appropriate Central Excise Duty. Show cause notice dt.11.10.2006 was issued to the respondent demanding an amount of Rs. 14,25,224/ - under Section 11D of the Central Excise Act on the grounds that during the period from 1.4.2005 to 14.5.2005, the respondent had collected Central Excise duty from M/s.IOCL while availing SSI exemption under Notification 8/03. The adjudicating authority has confirmed demand of Rs. 14,25,224/ - and also imposed penalty of Rs. 5000/ - under Rule 27 and Rs. 3.0 lakhs personal penalty under Rule 26 of Central Excise Rules,2002 against the partner of the respondent.

(3.) LD . A.R reiterates the grounds of appeal and submits that the consolidated invoices raised by the respondent on IOCL for the period 1.4.2005 to 14.5.2005 clearly indicated excise duty and cess and submitted the respondent has collected excise duty and also availed SSI exemption under Notification No. 8/2003. The amount collected as Excise Duty was not deposited to the department. He also submits that there is no time limit for raising demand under Section 11D of the Central Excise Act. Relied the case law in the case of Kisan Sahakari Chini Mills Ltd. Vs CCE -, 2005 (182) ELT 26 (SC).