SOUTH INDIA CEMENTS LTD., Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) This appeal arises out of and is directed against the impugned order dated 9.5.2000, passed by the Commissioner of Central Excise and Customs (Appeals), Bangalore.

(2.) The issue relates to imposition of penalty under section 11AC and also interest under Section 11AB of the Central Excise Act, 1944.

(3.) The counsel submitted that he is not contesting duty element but the imposition of penalty as well as interest is not sustainable in the eye of law. It was the contention of the party that the relevant penal provision under Section 11AC/11AB came into existence with effect from 28.9.96, whereas the period in question relates prior to amendment and the department was not justified in imposing the penalty and interest. It was also submitted by the counsel that the very issue has come up for consideration before the Tribunal in the case of Marcandy Prasad Radhakrishna Prasad Pvt Ltd Vs. Commissioner reported in 1998 (102) ELT 705 (T) and decided the issue in favour of the assessee. the view taken by the Tribunal was upheld by Supreme Court, as reported in 1999 (107) ELT A 121. The appellant counsel also relied upon the decision of Supreme Court in the case of Commissioner of Central Excise, Coimbatore Vs. Elgi Equipments Ltd reported in 2001 (128) ELT 52 (SC).