ASIAN INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE, DELHI

JUDGEMENT

(1.) THIS appeal has been filed by the appellants against the impugned Order -in -original of the Commissioner dated 24.8.2000 vide which he had confirmed the demand of Rs. 30,41,872/ - under Rule 9(2) read with proviso to Section 11A of the Central Excise Act and imposed penalty of the equal amount under Section 11AC on them.

(2.) The proceedings were drawn against the appellants on the strength of show cause notice dated 21.1.1999 on the allegation that they misused the benefit of Notification No. 175/86 dated 1.3.86 as Kanwal Puri, partner of the firm flouted another firm by the name M/s. Puri Rubber Pvt. Ltd. and clearances by the appellants were made on the invoices of the said firm. The appellants contested the correctness of the show cause notice. they denied the allegations made therein and maintained that the appellants and M/s. Puri Rubber were two independent different units in every process from raw material to manufacture of rubber belts. They also alleged that the demand was time barred. The Commissioner, however, did not accept their version and confirmed duty demand alongwith penalty as detailed in the impugned order.

(3.) THE learned counsel has challenged the validity of the impugned order on two grounds. Firstly, that the demand is time barred. Secondly, no show cause notice was issued to M/s. Puri Rubber Pvt. Ltd. and its Director Kanwal Puri whose clearances had been clubbed with that of the appellants.