LAWS(CE)-2002-10-187

DINESH POUCHES LTD. Vs. CCE

Decided On October 11, 2002
Dinesh Pouches Ltd. Appellant
V/S
CCE Respondents

JUDGEMENT

(1.) This appeal has been filed against the impugned order -in -appeal dated 18.1.2002 passed by the Commissioner (Appeals).

(2.) The facts are not much in dispute. The factory premises of the appellants were visited by the Central Excise officers, where they are engaged in the manufacture of Pan Masala and Gutka. The shortage of raw material i.e. menthol of 158.900 kg. of Perfumery compound weighing 103.65 kg. was detected. The adjudicating authority confirmed the duty demand of Rs. 6,849, imposed penalty of equal amount and disallowed Modvat credit of Rs. 82,943 and further imposed penalty of equal amount on the appellants. The authority imposed personal penalty of Rs. 10,000 on the appellants and of Rs. 5,000 on the Director of the Company. That order of the adjudicating authority had been modified by the Commissioner (Appeals) by setting aside the personal penalty of Rs. 10,000 on the Company.

(3.) The validity of the impugned order on merits has not been challenged before me. The counsel has only prayed for deduction in the penalty amount of Rs. 82,943 which has been imposed equal to the Modvat credit amount disallowed to the appellants, on the ground that Modvat credit had been reversed by making debit entry in PLA and duty amount had also debited vide PLA entry.