CCE Vs. VARANASI JUTE BAG INDUS. (P) LTD.

JUDGEMENT

(1.) THE relevant facts of the case, in brief, are that the appellants were engaged in the manufacture of P.P. Woven Fabrics and woven sacks falling under Heading No. 3993.90 and 3926.90 of the Schedule to the Central Excise Tariff Act, 1985. A show cause notice dated 4.4.2006 was issued proposing demand of duty for the period 2000 -2001 and 2001 -2002 of Rs. 1,13,603/ - and for imposition of penalty Under Section 11AC of the Central Excise Act, 1944. The Original Authority confirmed demand of duty of Rs. 1,13,603/ - along with interest and also appropriated the amount as deposited by them. He also imposed penalty of equal amount Under Section 11AC of the Act. The Commissioner (Appeals) modified the adjudication order in so far as penalty reduced to Rs. 25,000/ -. The Revenue filed appeal against reduction of penalty. The assessee filed cross objection against the duty and penalty of Rs. 25,000/ -.

(2.) LD . DR on behalf of the Revenue reiterates the grounds of appeal filed by the Revenue. He submits that in view of the decision of the Hon'ble Supreme Court in the case of Dharamendra Textile Processors : 2008 (231) ELT 3 (SC) there is no scope for reduction of penalty imposed Under Section 11AC. Regarding the cross objection filed by the assessee, he submits that the appellants paid duty in the year 2002, which was appropriated by them and, therefore, they can not raise the dispute against demand of duty at this stage. He further submits that the appellants realised excess amount on loading and unloading charges, which was detected by the Central Excise Officers. He submits that it is a case of suppression of facts with intention to evade payment of duty and imposition of penalty Under Section 11AC of the Act is justified.

(3.) AFTER hearing both the sides and on perusal of the records, I find that the appellant paid the duty of Rs. 5,280/ - and Rs. 2,556/ - on 10.10.2002 and Rs. 21,914/ - and Rs. 80,839/ - along with interest were paid on 12.07.2002. Original Authority appropriated the said amount as deposited by them. Hence, the assessee can not contest the duty deposited by them at this stage.