CCE Vs. BARNALA STEEL INDUSTRIES LTD.

JUDGEMENT

(1.) THE above captioned two appeals have been directed against the common order in appeal. The Appeal No. E/4808/04 -B has been filed by the assessee for setting aside the penalty of Rs. 1.5 lakhs confirmed against them by the Commissioner (Appeals) whereas appeal No. 4548/04 has been filed by the ' Revenue for enhancement of the penalty.

(2.) THE facts are not much in dispute. The assesses were engaged in the manufacture of MS bars during the period in dispute and were working under the compounded levy scheme w.e.f. 1.9.1997 vide their declarations dated 6.8.1997 and 24.5.1998. They failed to discharge their duty under Section 3A on the basis of their ACP determined by the competent authority. They were served with three show cause notices vide which they were called upon to deposit the total outstanding duty with interest for the period March, 1998 to March, 1999, August 1999 to December 1999 and January 2000 to March, 2000. The adjudicating authority confirmed the demand with interest and also imposed penalty of Rs. 13,30,000/ - under Rule 96 -ZP(3)(ii). The learned Commissioner (Appeals) has reduced the penalty to Rs. 1.5 lakhs.

(3.) ON the other hand, the learned JDR has contended that nonpayment of duty by the assessee was deliberate and the duty which remained unpaid by them during the period in dispute, was of Rs. 2,26,57,712/ -, Rs. 1,79,900/ - and Rs. 9,00,000/ - as the deposited only Rs. 71,087/ - and as such, the penalty deserves to enhanced.