MUKESH TEXTURISERS Vs. COMMISSIONER OF C. EX., SURAT

JUDGEMENT

(1.) AFTER hearing both the sides, I find that the appellants factory was put to search by the Central Excise officers on 13 -2 -1996, which resulted in recovery of 5 delivery challans (carbon copy) showing clearance of 1919.680 Kgs. of Crimped Yarn. Proprietor of the said unit, in his statement, admitted having cleared the Crimped Yarn under the cover of the above delivery challans without raising any Central Excise invoices and without payment of duties. He further admitted that the goods were cleared on cash basis in the open market. They also deposited the duty amount of Rs. 1,01,552/ -.

(2.) ON the above basis, proceedings were initiated for confirmation of demand of duty and for imposition of penalty. The original Adjudicating Authority, apart from confirming the demand, imposed personal penalty on equivalent amount and equivalent amount on the manufacturing unit and penalty of Rs. 2 lakhs was imposed on Shri Mukesh Kantilal Ganeshwala, Proprietor of the unit in terms of Rule 209A of Central Excise Rules, 1944.

(3.) ON appeal against the above order, Commissioner (Appeals) confirmed the duty amount; but reduced the penalty on the manufacturing unit to Rs. 30,000/ - by observing that the entire duty was deposited by the appellant before the issuance of the show cause notice. Personal penalty imposed upon the Proprietor was however set aside. Hence the present appeal.