PETRO CARBON INDUSTRIES Vs. CCE

JUDGEMENT

(1.) Learned Counsel Shri Bipin Garg on behalf of the Appellants submits that this matter is old and the factory is also closed. To avoid litigation, the appellant has also released the goods depositing the redemption fine of Rs. 40,000/ - and paying the duty involved. The appellant has suffered penalty on two counts i.e. under Rule 8 and Rule 173 -Q under Central Excise Rules 1944 by an amount of Rs. 31,000/ - and Rs. 5,958/ - respectively. He further argues that Revenue has made the case without any substance. Goods were seized on 3.7.99 and the order was passed on 31.10.2000 without examining the alleged discrepancies thoroughly. There was no discrepancy at all. But confiscation was directed. There was no suppression of any fact or goods. He prays that duty and penalty may be waived.

(2.) Learned DR supports the order passed by lower authority and submits that duty and penalty were rightly imposed. The appellant having contravened the law, release of the goods by paying fine was warranted.

(3.) The penalty under Rule 8 is for contravention of provisions of law. Considering that penalty would be proper in this case, the penalty of Rs. 31,526/ - imposed under Rule 173 -Q is waived. Interest shall be calculated on the basis of duty liability arising in consequence of this order.