KANY HEALTHCARE Vs. COMMISSIONER OF C. EX., BHAVNAGAR

JUDGEMENT

(1.) HEARD both the sides. The appellant filed this appeal for setting aside the penalty imposed under Section 11A of Central Excise and Rule 26 of the Cenvat Credit Rules.

(2.) THE appellants are engaged in the manufacture of cough drops and availing the benefit of small scale exemption notification. On a specific information, the Revenue officers visited the factory premises of the appellants and found that they were also manufacturing and clearing cough drops in the brand name of Zota and Cool. When the Revenue officers pointed out that the appellants are not entitled for small scale exemption in respect of the branded goods, the appellants deposited the duty and made a request not to issue any show cause notice. The adjudicating authority confirmed the demand of Rs. 48,034/ - in respect of the brand goods cleared by the appellants and also imposed penalty.

(3.) THE contention of the appellant is that as per the provisions of Section 11 -B(2) of the Central Excise Act, the appellants are not liable for any penal action.