SANGAM PROCESSORS (BHILWARA) Vs. CCE

JUDGEMENT

(1.) The first appellant M/s. Sangam Processors (Bhilwara) Ltd. is a processor of textile fabrics. The second and third appellants M/s. Sangam India Ltd. and M/s. Sangam Suitings are textile fabric manufacturers who got their fabrics proposed by the first appellant. The remaining appellants are officers of these manufacturing units.

(2.) Processing of fabrics was liable to central excise duty at ad -valorem rates. Therefore, M/s. Sangam processors were discharging central excise duty on the processed fabrics based on their value. However, dispute arose about the correctness of the amount of duty paid by them. This led to the issuance of 2 Show -Cause -Notices dated 2.7.99 and 5.7.99 by the jurisdictional Central Excise Commissioner. The notices proposed recovery of the duty short levied as well as imposition of penalties on the processor, the aforesaid 2 supplier of fabrics and the officers of the companies. The Show -Cause -Notice also charged that the short levy was the result of suppression of facts by the appellants, thereby attracting the Proviso to Section 11A of the Central Excise Act for recovery of duty during the extended period. Under the adjudication order dated 4.4.2000 the Commissioner of Central Excise, Jaipur upheld the allegations. Consequentially duty demand of over Rs. 83 Lakhs was confirmed and penalties were imposed on the present appellants. The appellants moved this Tribunal in appeal. Vide its final order numbers 800 -805/2000 -A dated 6.9.2000 this Tribunal allowed the appeals after setting aside the adjudication order. Aggrieved by that order, Revenue moved the Hon'ble Supreme Court. Vide its order dated 13th November, 2002 the Apex Court was pleased to dispose of the appeals by way of remand and passed the following order:

(3.) We have perused the records and have heard both sides during the hearing on 1st January, 2004, and all the appeals are disposed of under this common order.