MUKAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, BELGAUM

JUDGEMENT

(1.) THIS is an appeal against OIO 4/2004, dated 20 -4 -2004 passed by the Commissioner of Central Excise, Belgaum.

(2.) THE brief facts of the case are as follows : The appellants manufacture various goods like Billets/Blooms/Rounds of Alloy and Non -alloy steel falling under Chapter 72 of the Central Excise Tariff Act, 1985. They clear the goods to various buyers. They also clear the goods to their sister units. Even though they paid duty on the basis of value of comparable goods under Rule 6(b)(i) of the CE Valuation Rules, Revenue proceeded against them and demanded duty on the basis of Cost Construction Method under Rule 6(b)(ii) of the Valuation Rules, 1975. In the impugned order, duty of Rs. 8,18,29,622/ - has been demanded for the period from 9/98 to 1/2000. Equal penalty has been imposed under Section 11AC. Interest under Section 11AB has been demanded. The appellants strongly challenged the impugned order.

(3.) SHRI T. Rajeswara Sastry, the learned Advocate appeared on behalf of the appellants and Shri R.N. Vishwanath, the learned SDR for the Revenue. The learned Advocate urged the following points : -