SHAKUN MARBLES (P) LTD. Vs. CCE JAIPUR-I

JUDGEMENT

(1.) This case involves a duty of Rs. 3223/ -,a penalty of Rs. 2000/ - imposed under Rule 173 q of Central Excise Rules, 1994 and a penalty of Rs. 3223/ - imposed under Section 11 AC of the Central Excise Act, 1944 on the appellants by the Joint Commissioner of Central Excise,Jaipur vide his Order dated 23.9.99. The above order is upheld by Commissioner (Appeals) vide his order dated 11.10.2000.

(2.) The appellants are contesting the above order of Commissioner (Appeals). the matter is listed today for hearing the stay petition filed by the appellants. Shri A.L. Mathur, consultant appering for the appellants submits that the duty of Rs. 3223/ - is already deposited by them therefore, the stay petition is against the penalty amounts of Rs. 2000/ - and Rs. 3223/ -. It is contended by the Ld. consultant that no demand of duty is raised in the show cause notice dt 1.3.99 issued in this case and therefore since there is no demand of duty raised, the question of imposition of penalty under the provision of Section 11 AC would not arise. He further submitted that since the party deposited the amount of duty confirmed on them even prior to the issue of show cause notice, there is no warrant to impose penalty under Rule 173Q. Shri Swatantra Kumar, Ld.JDR appearing for the respondents does not dispute these facts but however, reitrates the findings arrived at by the lower authorities.

(3.) I have considered the above submissions. It appears that the appellants are not contesting duty of Rs. 3223/ - imposed on them. This amount is already deposited. I find prima facie force in their contention that since there is no demand of duty made in the show cause notice issued in this case, the imposition of penalty under section 11AC would not arise. In view of this fact I direct them to make a deposit of Rs. 2000/ - imposed on them as penalty under Rule 173 Q on or before 20th April, 2001. The matter will be called for reporting compliance on 25.4.2000/ -