GOYAL INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE, SURAT

JUDGEMENT

(1.) ALL the four appeals, two filed under Excise Act and two under Customs Act, are being disposed by a common order as they arise out of the same impugned order.

(2.) AFTER hearing both sides, duly represented by Shri Willingdon Christian, learned advocate appearing for the appellants and Shri M.M. Mathkar, learned DR appearing for the Revenue, we find that the appellant is a 100% EOU. Their factory was visited by the officers on 25 -2 -99, who conducted checks and verifications and a shortage of 7,295 kgs. of texturised yarn i.e. finished product was found. Accordingly, proceedings were initiated against them by way of issuance of show cause notice, dt. 28 -11 -03, demanding Central Excise duty of Rs. 3,37,265/ - in respect of the final product on the allegations of clandestine removal of the same. The notice also proposes to confirm Customs duty of Rs. 2,65,920/ - on the quantity of duty free imported raw material i.e. POY, allegedly used in the manufacture of aforesaid short found goods. A common impugned order was passed confirming the demand as proposed and imposing penalty to the extent of 100%. Subject order is impugned before us.

(3.) LEARNED advocate submits that he is not challenging confirmation of Central Excise duty in respect of short found final product, but submits that in as much as the same was deposited before issuance of show cause notice, penalty amount be reduced to 25% of the duty amount, in terms of Honble High Court of Delhi in case of CCE v. Malbro Appliances [2007 (208) E.L.T. 503 (Del.) = 2007 (5) S.T.R. 256 (Del.) = 2007 (79) RLT 109 (Delhi)]. In view of the above submission, we confirm the Central Excise duty of Rs. 3,37,265/ - as not contested and reduce penalty to 25% of the said amount.