AMRIT BOTTLERS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) In this appeal, the appellants have challenged the correctness of the impugned order -in -appeal vide which the Commissioner (Appeals) has affirmed the order -in -original of the Addl. Commissioner, who confirmed the duty demand of Rs. 6,59,137.00 with penalty of equal amount payable with interest against the appellants. The duty has been confirmed against the appellants for having been disposed 18958 crates and 05 bottles of manufactured aerated water without their accountal in RG -1 and without payment of duty, during the period August, 1995 to May, 2000, after rejecting plea that the disposed aerated water did not qualify the test with regard to contamination, under/over filling and badly crowned bottles. They also disposed of 615 crates and 11 bottles of samples required for laboratory test without proper accountal and without payment of duty.

(2.) The Id. Counsel has contended that the disposed aerated water was not marketable and as such did not qualify as 'goods' for the purpose of levying duty. The defects found in that water were indicated by the appellants in their production formats. Therefore, no duty could be claimed in respect thereof and as such the impugned order deserves to be set aside.

(3.) On the other hand, Id. SDR has reiterated the correctness of the impugned order. We have heard both sides and gone through the records.