COMMISSIONER OF CENTRAL EXCISE Vs. GODAVARI

JUDGEMENT

(1.) HEARD Shri Alok Sharma, learned Assistant Solicitor General, for the appellant. Respondent served and absent.

(2.) A show cause notice dated 24.11.2003 was served on the Respondent-assessee, demanding an amount of Rs.2,48,089/- along with equal penalty under Section 11-AC of the Central Excise Act, 1944 (henceforth, "the Act" for brevity's sake). The assessee did not file any reply or documents and inspite of sufficient opportunities, it did not present its' case. Consequently, the Deputy Commissioner, Central Excise and Customs, Nanded, confirmed the notice of demand for Rs.2,48,089/-, as also charged interest under Section 11-AB of the Act and imposed penalty of Rs.10,000/- on the assessee under Section 11-AC of the Act.

(3.) RELIANCE was placed by the Department on the decision of the Supreme Court in the matter of Sony India Ltd. vs. Commissioner, Central Excise, Delhi, 2004 (176) ELT 385 (SC). Learned Member of CESTAT refused to follow the decision, by observing that it was a case where penalty under Section 11-AC, equivalent to duty evaded, was imposed and such an imposition was upheld by the Supreme Court.