COMMISSIONER OF CENTRAL EXCISE Vs. SURYA FINE CHEMICALS

JUDGEMENT

(1.) This Civil Miscellaneous Appeal is filed, to set aside the Final Order No.40020 of 2015 in E/1174/2004 dated 18.01.2015 on the file of the Customs, Central Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai - 6.

(2.) The brief facts of the case are that M/s.Surya Fine Chemicals, the 1st respondent herein, is a manufacturer of Food Colour Preparations (hereinafter called as "FCP" in short). Having agreed to make Food Colour Preparation from Food Colours (hereinafter called as "FC" in short) sent by M/s.Bush Boake Allen India Limited (hereinafter referred to as "M/s.BBA India Limited" in short) based on the agreement dated 07.09.1993, the 1st respondent engaged themselves in the manufacture of FCP, on job work basis to M/s.BBA India Limited during the period from September 1993 to June 1997, out of the raw materials i.e. FC, supplied by M/s.BBA India Limited as per their specifications and under the brand name of M/s.BBA India Limited and clear of the same from their factory. The 1st respondent got themselves registered with the Department only on 19.06.1997 and started paying duty on the clearance of the said products manufactured by them from 19.06.1997 onwards.

(3.) The case of the appellant herein is that they have made a prima facie case against the 1st respondent for non payment of duty in respect of the manufacture and clearance of the above said products during the period from 16.01995 (the date of insertion of Chapter Note 7 to Chapter 21) to 18.06.1997. The said matter was investigated by the Headquarters Preventive Unit of the Central Excise Department, which culminated in issuing of Show Cause Notice No.2/2001 dated 001.2001, demanding duty of Rs. 1,55,56,454/- under proviso to Section 11A(1) of the Central Excise Act 1944, for the period from 01.12.1995 to 18.06.1997, besides demanding appropriate interest under Section 11(a)(b) and sought to impose penalty under Section 11(a)(c) and Rule 52(a), 173(q) and 226 of the Central Excise Rule 1944. The appellant had also sought to impose penalty under Rule 209A of the Central Excise Rule 1944 on M/s.BBA India Limited for their alleged collusion.