HAST SHILP Vs. CCE

JUDGEMENT

(1.) The appellants filed this appeal against the Order -in -Appeal passed by the Commissioner (Appeals).

(2.) The brief facts of the case are that on 24.1.97, the Officers of Revenue Department visited the office premises of M/s. Kurlon Limited and on verification it was found that M/s. Kulon Limited were purchasing pillows from the present appellant with brand name of M/s. Kurlon Limited. Thereafter the Officers of Revenue Department made enquiry from the present appellant and it was found that that the present appellants entered into a contract with M/s. Kurlon Limited for supply of pillows and one of the condition of the agreement was that pillows will carry the brand name of "Kalpana Valvet Touch" of M/s.Kurlon Limited. A show cause notice was issued to the appellants demanding duty after denying SSI exemption on the ground that the appellants were clearing the branded goods without payment of duty. The adjudicating authority confirmed the demand and imposed the equal penalty amount under Section 11AC and Rule 173Q of the Rules.

(3.) The appellants filed the appeal and the Commissioner(Appeals) confirmed the demand and reduced the amount of penalty under Section 11AC as this section was introduced in the Central Excise Act on 28.9.96 and some period of demand was prior to 28.9.96. The Commissioner(Appeals) also imposed the penalty under Rule 173Q of the Rules.