BHOR INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) IN the above appeal, the appellants challenge the imposition of penalty of Rs. 25,000/ - (Commissioner (Appeals) has reduced the penalty from Rs. 50,000/ - imposed by the adjudicating authorities to Rs. 25,000/ -). The penalty has been imposed on the ground of contravention of the provisions under Rule 173Q of the Central Excise Rules. The case of the department is that the assessees had received PVC sheets from their Prabhadevi unit for processing of printing/embossing, and the transportation and processing charges is not included in the value of the final product.

(2.) WE have heard both sides. We find that the stand of the assessee that the factory gate price of the PVC goods was the same from the Borivali plant and the Prabhadevi plant and therefore the question of inclusion of transport charges and processing charges does not arise, has not been contraverted. This being so there is no contravention of any of the provision of the Central Excise Act and Rules so as to hold the appellant is liable to penalty. We, therefore, set aside the penalty and allow the appeal.