RAMANI ICE CREAM Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The above captioned appeals have been preferred against the common Order -in -Original, dated 30 -4 -2001, passed by the Commissioner of Central Excise vide which he had confirmed the duty and imposed penalties of various amounts as detailed in the Order itself on the appellants. The appellant No. 1 is a company engaged in the manufacture of Ice -cream falling under Chapter 21.05 of the CETA. The officers of the Preventive Branch of the Central Excise, Bhopal conducted search of their factory, office and outlying premises after getting information that they were indulging in large scale evasion of the Central Excise duty by suppression of production and clandestine removal. During investigation record of the company was also resumed, statements were recorded in detail. Thereafter, show cause notice was issued vide which duty demand of Rs. 28,12,308/ - was also raised and penalties were also proposed to be imposed on the company and the other appellants. The duty demand raised was for the period 1995 -1999. The appellants contested the correctness of the show cause notice by denying the allegations made therein The Commissioner through the impugned Order confirmed the duty demand and imposed penalties on the appellants as detailed in the impugned Order.

(2.) We have heard both the sides.

(3.) The learned Counsel have, at the outset, contended that the Commissioner has travelled beyond the scope of the show cause notice and confirmed the duty demand after taking into consideration the total consumption of the milk used in the preparation of Ice -cream by the appellants during the period in question, whereas in the show cause notice the demand had been calculated by taking into account the total consumption of the sugar in the preparation of the Ice -cream made, during the disputed period, by the appellants. Therefore, the impugned Order, according to the Counsel, deserves to be set aside on this ground alone, when it has been passed on the basis of facts which were never put to the appellants.