NIRMAL INDUSTRIES Vs. CCE

JUDGEMENT

(1.) WHEN the case is called nobody appeared for the appellants. The appeal is taken up for disposal.

(2.) IN the impugned order the Commissioner (Appeals) had sustained a demand of Rs. 31,844/ - being 8% of the sale price of the exempted final products cleared by the appellants during the material time and a penalty of equal amount under Section 11AC read with Rule 173Q/Rule 25 of the Central Excise No. (2) Rules, 2001.

(3.) THE facts of the case are that during the years 2000 -2001 and 2001 -2002, M/s. Nirmal Industries, the respondents herein had manufactured and cleared final products Electric storage water heaters and Solar water heaters bearing Nirmal brand and such goods bearing V -guard brand belonging to another person. The final products bearing V -guard brand were cleared on payment of duty. In respect of the Nirmal brand products, the respondents availed SSI exemption under Notifications No. 8/2000 -CE and 8/2001 -CE. As the respondents were found to have used common inputs without maintaining separate accounts as regards their receipt, consumption and inventory, proceedings were initiated as per Central Excise Rules. On conclusion of the proceedings, the original authority demanded an amount of Rs. 31,844/ - in terms of Section 11A of the Central Excise Act, 1944 read with Rule 6(3)(b) of the Cenvat Credit Rules 2001, Rule 57AD(2)(b) and 571 of the Central Excise Rules, 1944. An amount equal to 8% of the sale price charged by the respondents for sale of Nirmal brand products was demanded. A penalty equal to the said amount was also imposed under Section 11AC of the Central Excise Act, 1944 read with Rule 173Q of Central Excise Rules, 1944 and Rule 25 of the Central Excise No. (2) Rules, 2001. Interest due also was demanded.