OPAL AUTO INDUSTRIES Vs. CCE

JUDGEMENT

(1.) Appellants filed this appeal against the adjudication order passed by the Commissioner of Central Excise.

(2.) Heard both sides.

(3.) Brief facts of the case are that appellants are engaged in the manufacture of diesel engines, generating sets and pump sets. The unit of the appellants was visited by the officers of the revenue department on 1.12.99. During verification of the records, it was found that 1340 pcs. of crankshafts of different varieties and 135 pcs. of diesel engine sets were found in excess than the recorded balance in their R.G. I register. The goods were taken into possession. During verification, it was also found that the appellants were clearing the goods with the brand name of OPEX' belonging to M/s. Opal Engg. Corpn. and were availing the benefit of small scale exemption notification. Show cause notice was issued to the appellants for confiscation of the goods found in excess and also for demanding duty in respect of branded goods by denying the benefit of small scale exemption notification. A proposal was also made in the show cause notice regarding imposition of penalty. The adjudicating authority confiscated the goods and ordered redemption of the goods on payment of redemption fine of Rs. 2.27 lakh. Duty was confirmed and penalty of Rs. 16 lakh was imposed on the appellants.