UNION OF INDIA (UOI) Vs. BHASIN & COMPANY

JUDGEMENT

(1.) The Revenue has filed this petition under Sec. 35H(1) of the Central Excise Act, 1944, praying that the Tribunal be directed to refer the following question for the opinion of this Court : -

(2.) The assessee is engaged in the manufacture of woollen worsted yarn. On May 8, 1998, the Customs -Excise Preventive Officers visited the factory premises and checked the records. They found that during the year, 1994 - 95, the respondent had manufactured and cleared yarn valued at Rs. 43,03,024/ - without complying with the provisions of law. Thus, an order for payment of Rs. 74,924/ - by way of duty as also 'penalty of 100% under Sec. 11AC of the Act, was passed on March 31, 1999. Aggrieved by the order, the respondent filed an appeal. It was accepted by the Commissioner vide order dated February 13, 2000. The Revenue challenged the order before the Tribunal. The appeal having been dismissed vide order dated September 13, 2000, the Revenue has filed the present petition.

(3.) The solitary contention raised by Ms. Shahi, learned Counsel for the Revenue is that even if the provisions of Sec. 11AC of the Act were not retrospective, the Department should have been permitted to proceed under Rule 173Q of the Central Excise Rules, 1944.