BALLARSHA PLYWOOD Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Appeal No. RK/222/NGP -C/2004 dated 25.08.2004, passed by the Commissioner of Customs and Central Excise (Appeals), Nagpur.

(2.) THE appellants manufactured 'Plain Particle Board' which is dutiable and 'Pre -laminated Particle Board' made from Bagasee which is exempted from Excise duty vide Notification No. 06/2000 -CEX dated 01.03.2002. The case of the Department is that for both the Boards common input has been used. The proceedings were initiated against the appellants for payment of duty on the intermediate product, Resin used in Particle Board made from the Bagasse. Further it was alleged that the appellant captively used 5467.14 Kg of Resin valued at Rs. 2,07,751.32 without payment of duty of Rs. 33,240/ -. The lower authority confirmed the demand of Rs. 33,240/ - under Section 11A along with interest under Section 11AB. Further he imposed penalty of Rs. 15,000/ - under Rule 25 of the Central Excise Rules, 1944. Aggrieved over the above order, the appellants appealed to the Commissioner (Appeals). The Commissioner (Appeals) upheld the Order -in -Original demanding duty on the resin used in the manufacture of exempted particle board. The appellants are highly aggrieved over the impugned order of the Commissioner (Appeals).

(3.) SHRI V.J. Sankaram, learned Advocate appeared for the appellants and Shri Anil Kumar, learned JDR appeared for the Revenue. Shri Sankaram, the learned Advocate explained the following points: