COMMISSIONER OF THE CENTRAL EXCISE Vs. DEV ASHISH

JUDGEMENT

(1.) This Appeal challenges the order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dated 5th April, 2004 (Annexure-'G').

(2.) This Appeal of the Revenue has been admitted by this Court on 20th October, 2005 on the following substantial question of law:-

(3.) We have heard Mr. Jetly appearing for the Revenue in support of this Appeal and Mr. Khemka appearing for the Respondent Assessee. The Respondent Assessee is engaged in the business of manufacturing of natural diamond powder and dust falling under Ch. H. No. 7101.80 of the Central Excise Tariff Act, 1985. The Assessee cleared these goods for sale without following the Central Excise Act, 1944 and Rules framed thereunder. The duty liability was not discharged. On investigation carried out by the Revenue/Department, it was revealed that the Assessee actually manufactured and cleared dutiable goods valued at Rs.4,04,32,816/-. A show cause notice was issued on 31st January, 2000 demanding duty of Rs.15,36,350/-. The proviso to section 11AC was invoked for imposition of penalty and for recovery of interest, section 11AB of the Central Excise Act, 1944 was applied.