APEX CHEMICALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Appellant is directed against the imposition of penalty of Rs. 10,000/ -. The appeal is admitted in view of the special circumstances.

(2.) Heard both sides and perused the record. The impugned order has noted that the appellants total clearance of less than Rs. 17 lakhs was within full exemption from central excise duty. Penalty has been imposed only for failure to keep proper central excise accounts. The submission of the appellant is that their unit is not functional and since there is no evasion of duty, penalty is not justified.

(3.) It is not in doubt that no duty was payable by the appellant. In fact their clearances were very small and well within the fully exempted limit. In the circumstances, failure to keep proper account cannot be the result of intention to evade duty. Appellant unit is also in difficulties and is not functional. In these circumstances, the appeal is allowed and penalty imposed is set aside.