PUNJAB RECORDER LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) BY the impugned order No. 1867/CE/CHD/99 dt. 29.10.99, the Commissioner (Appeals) upheld the Order -in -Original passed by Dy. Commissioner confirming demand of Rs. 87,838 -50 and imposing a penalty of Rs. one lakh under Rule 173Q of Central Excise Rules read with Section 11AC of the Act. Being aggrieved by this order, the appellants have filed this Appeal No. E/401/2000 -D.

(2.) THE facts of the case in brief are that the appellants are engaged in the manufacture of Uninterrupted Power Supply System (UPS). The officers of Central Excise visited the factory premises of the appellant on 16.12.94 they found that during the period 20.3.92 to 13.7.92 the appellants had cleared Lead Acid Batteries valued at Rs. 9,07,600/ - involving duty amounting to Rs. 98,838.50. Accordingly, a Show Cause Notice was issued to the appellants asking them to explain as to why duty amounting to Rs. 98,838.50 should not be demanded from them in -as -much as they had not been paying duty on the value of batteries being cleared as part of the UPS system without including the value of the Lead Acid Batteries in the assessable value of the UPS system, why interest should not be demanded under Section 11AB of the Central Excise Act and why penalty should not be imposed under Section 11AC read with Rule 173Q of the Central Excise Rules, 44. In reply to the SCN, the assessee submitted the batteries supplied with the UPS system were nothingelse but a accessories; that the Lead Acid Batteries were exempted during the material period; that the respondents did not apply their mind by stating that the demand pertains to the period April'92 to June'92 whereas in the SCN at one point the period has been shown as April'92 to July'95; that a SCN was issued on 11.3.97; that the entire demand was time barred.

(3.) IT was also contended that the appellants categorically declared in the classification list that UPS system would be cleared alongwith the batteries; that the invoices on which the goods were cleared, batteries were mentioned; that these invoices showed that batteries were cleared without payment of duty; that the assessments in R.T. 12 Returns were finalised; that the entire demand was time barred.