EXOTIC ASSOCIATES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) SINCE both Tax Appeals one filed by the assessee and other one filed by the revenue, are arising out of the same order of the CESTAT and since both these appeals are heard together, the same are being disposed of by this common judgment and order.

(2.) TAX Appeal No. 572 of 2007 is filed by the assessee. This appeal was admitted on 04. 05. 2007 and following substantial questions of law were formulated by the Court at the time of admission of the appeal :-

(3.) THE brief facts giving rise to the present Tax Appeals are that the assessee is engaged in manufacture of clearance of chemicals like Sodium Cynate, Cuprous Chloride, B. D. S. A. , etc. falling under Chapter Head Nos. 28 and 29 of the Schedule to the Central Excise Tariff Act, 1985, and had a registration under the Central Excise Act, 1944. On the basis of Special Intelligence information, the Unit of the assessee at Ahmedabad was visited and searched on 18. 02. 2000 by a group of officers of Preventive Wing of Central Excise Commissionerate Ahmedabad 1. After necessary inquiry and investigation, a show-cause notice was issued on 09. 04. 2002 calling upon the assessee as to why the Central excise duty amounting to Rs. 5,99,500/- on finished goods valued at Rs. 43,04,935/- manufactured and cleared illicitly should not be recovered under the proviso of Section 11a (1) of the Act. The assessee was also called upon to show-cause as to why central government duty amounting to Rs. 97,063/- involved on inputs should not be recovered. The assessee was further asked to show-cause as to why penalty under Section 11ac of the Act and erstwhile Rule 173 Q of the Central Excise Rules, 1944 should not be imposed. The assessee was further asked to show-cause as to why interest at the prescribed rate should not be charged and recovered from them under provisions of Section 11aa of the Act.