COMMISSIONER OF C. EX. Vs. PARAS FAB INTERNATIONAL

JUDGEMENT

(1.) BEING aggrieved with the order passed by Commissioner (Appeals), revenue has filed the present appeal. We have heard learned JCDR Shri Pramod Kumar. Nobody appeared for the respondent. Brief facts of the case are that the Appellants are a 100% EOU and engaged in the manufacture of Terry Towel falling under Chapter Heading No. 63.02 of the schedule to the Central Excise Tariff Act, 1985. During the period September, 2003 to Jan., 2004 Appellant availed benefit of the exemption of Notification No. , dated 1 -3 -2003 on the DTA clearance and thus paid Central Excise duty @ 10% instead of 16% ad valorem (Tariff rate). Adjudicating authority vide impugned order demanded Central Excise duty amounting to Rs. 18,50,043/ - under Section 11A of Central Excise Act, 1944 along with interest under Section 11AB of Central Excise Act, 1944 and imposed a penalty of Rs. 1,00,000/ - under Rule 25 of Central Excise Rules, 2002 on the ground that Notification No. , dated 1 -3 -2003 has been issued under Section 5A of Central Excise Act, 1944 therefore it was not applicable to 100% EOU. Aggrieved with this impugned order the Appellants filed appeal before Commissioner (Appeals).

(2.) COMMISSIONER (Appeals) allowed the same by observing as under: