R.K. STEELS Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against Order -in -Appeal dated 30.9.2004 which upheld the Order -in -Original imposing penalty under Rule 26 of the appellant.

(2.) THE relevant facts that arise for consideration are that the appellant in this case is brand owner of the brand 'R.K.' He supplied empty cartons to different manufacturers of iron wooden screw. These manufacturers after manufacturing iron wooden screw pack them in these boxes and sell to the appellant claiming exemption of duty as a small scale industry. Investigation carried out by the authorities concluded that the manufacturers who avail the benefit of SSI exemption were not eligible to avail the same on the ground that they are manufacturers of branded goods. Show cause notices were issued to all the three manufacturers and the current appellant was made one of the noticee in all the 3 show cause notices. The adjudicating authority confirmed the demand against all the 3 manufacturers for wrong utilization of SSI benefit and imposed penalty on the current appellant under Rule 26 of the Central Excise Rules, 2002. On an appeal the Commissioner (Appeals) also concurred with the views of the adjudicating authority and upheld the penalty imposed on the appellant. Hence, this appeal.

(3.) LEARNED Advocate for the appellant submits that the imposition of penalty under Rule 26 is not warranted in this case inasmuch that there is nothing on record to show that the appellant had fulfilled the conditions laid down under Rule 26 for imposition of penalty on him. It is his submission that the appellant had, in fact, ordered for iron wooden screws from 3 manufacturers and asked them to pack in his containers and sell to him.