CHENNIMALAI YARNS (P) LTD. Vs. CCE, TRICHY

JUDGEMENT

(1.) THE appellant in this stay application seeks waiver of pre -deposit of Rs. 3,28,857/ - imposed as penalty jointly under Section 11AC, 173Q and 226 of the Central Excise Act 1944.

(2.) Appearing on behalf of the appellants, Shri G. Suresh, Ld. Consultant submits that the period in question is before the promulgation of the Section 11AC and therefore, penalty cannot be imposed. He also further submits that the duty in the present case has already been paid before the issue of Show Cause Notice and the order -in -original referred to the payments made and adjusted towards the demand. He submits that in such circumstances the Tribunal has held in the case of Amritsar Crown Caps (P) Ltd. v. CCE, Chandigarh reported in : 2002 (140) ELT 437 (TRI -DEL) that no penalty is leviable. He submits that a large number of judgments of the Tribunal has held that both the provisions of law cannot be invoked for imposing penalty. He filed a list of citations.

(3.) ESCORTS JCB Ltd. v. CCE, : 2000 (118) ELT 650 (T) : 2000 (89) ECR 93 (T).