COMMISSIONER OF CENTRAL EXCISES, Vs. KARAN ENTERPRISES

JUDGEMENT

(1.) The brief facts of the case are that officers of the Central Excise (Preventive) visited the factory premises of the respondents and found that they had collected an amount from their customers by raising separate debit notes on account of designing and cost of printing cylinders. They did not pay central excise duty on the amount collected. Therefore, a demand of Rs. 63,410/ - was confirmed against them by the Deputy Commissioner who also imposed a penalty of amount equal to duty under Section 11AC of the Central Excise Act. The Commissioner (Appeals) set aside the penalty on the ground that the period of demand viz. 93 -94 to 96 -97 was prior to the introduction of Section 11AC in the Statute Book. Hence this appeal by the Revenue.,

(2.) On hearing Shri Jagdish Singh, learned DR and Shri J.S. Agarwal, learned Advocate and perusing the judgment of the Apex Court in the case of Commissioner of Central Excise, Coimbatore vs. Elgi Equipments Ltd. reported in 2001 (42) RLT 974 SC in which it has been held that penalty under Section 11AC is not leviable in respect of any illegality committed prior to the insertion of the Section, I hold that there is no legal infirmity in the impugned order and accordingly uphold the same and reject the appeal. (Dictated in open court)