PLYBOARD INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) In this appeal, which has been preferred by the appellants against the impugned order -in -original, the issue relates to the availability of exemption Notification No. 85/85, dated 17 -3 -1985 to them.

(2.) The facts are not much in dispute. The appellants were engaged in the plywood block board etc. during the disputed period. However, later on they were taken over by M/s. J.K. Industries Ltd. (J&K State Government). They were served with show cause notice by denying them the benefit of the above said notification during the years 1986 -1987 to 1989 -1990. They were called upon to pay duty as per law and penalty was also proposed to be imposed on them, in the show cause notice.

(3.) The adjudicating authority confirmed the demand by denying them the benefit of the above said notification on the ground that their clearance and that of the unit of J and K Industries exceeded the limit prescribed under notification No. 175/86 -C.E., dated 1 -3 -86. He has also opined that the appellants were not registered with the Director of Industries as required under the said notification and were not entitled to the benefit of the notification as their clearances were more than 7.5 lakhs.