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

JUDGEMENT

(1.) HEARD both sides.

(2.) THE issue under consideration of this appeal is whether the goods received back are the damaged glass bottles which were originally cleared on payment of duty and again after re -making duty can be demanded on the ground that transit insurance claim was made.

(3.) THE appellants are the manufacturer of excisable goods i.e. empty glass bottles falling under Chapter 70 of the Schedule to the Central Excise Tariff Act, 1985. On certain occasions appellants are getting back damaged Glass Bottles under provision of Rule 173H of erstwhile Central Excise Rules, 1944 (present Rule 16 of the Central Excise Rules, 2001 -2002), on which the appellants have claimed Insurance and had been compensated/reimbursed the damages including the element of duty. There is an allegation of the Department that the appellants have suppressed the fact and cleared damaged goods after remanufacture of the same without payment of duty. In this connection two Show -Cause -Notices were issued demanding duty of Rs. 1,04,776/ - and Rs. 54,686/ -and proposing imposition of penalty. Both Show -Cause -Notices were adjudicated by confirming the demand and also imposition of an equal amount of penalty. The Original -Adjudicating Authority has also confirmed the same.