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TMI Blog2002 (2) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing forgings for valves of L.P.G. gas stove. On stock taking of the goods in their factory premises, it was found that they were having components of valves for LPG gas stoves and semi-finished forgings of valves and stock for forging flash. Since the party did not possess any Central Excise Registration, these goods were seized and handed over to Shri Naresh Kumar Dabas, brother of the proprietor of the party for safe custody. Their factory premises at sl. (b) above were also visited on the same day and it was found that they were engaged in the manufacture of brass rods by casting and drawing of cast rods. Some finished and semi-finished brass rods were also seized and handed over to Shri Naresh Kumar Dabas. The Central Excise auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use why the central excise duty amounting to Rs. 13,06,749/- (out of this, an amount of Rs. 13 lakhs had already been deposited by the party on 5-3-98), should not be demanded and confirmed on them under Rule 9(2) of Central Excise Rules, 1944 read with the proviso to Section 11A of Central Excise Act, 1944 for both of these years. They are further called upon to show cause why a penalty should not be imposed on them under Section 11AC and under Rules 9(2), 173Q or 226. Shri Suresh Kumar Dabas, Proprietor of the firms was called upon to show cause why a penalty should not be imposed on him under Rule 173Q. 2. On considering the reply of the party, the Addl. Commissioner of Central Excise, Delhi-I vide his Order dated 31-12-99 confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld also be revised. 4. This appeal is against the impugned order of the Commissioner (Appeals). We have heard Shri J.P. Kaushik, Advocate for the appellants and Shri M.M. Dubey, JDR for the respondents. The ld. Counsel for the appellants very fairly submitted that he is not questioning the facts as mentioned in the show cause notice and those taken into consideration for the demand of duty and imposition of penalty on them in the Order-in-Original. He however states that as per the Table annexed to the show cause notice, a total value of Rs. 1,26,81,339/- is computed for the demand of duty of Rs. 11,27,200/- in respect of goods cleared by them during the year 1996-97. The ld. Counsel submits that out of this, an amount of Rs. 1,07,64,723/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which the order determining the duty relates to the notices issued prior to the date of this amendment and the duty is paid prior to the date of the communication of the order. It is argued that in the present case, the appellants paid an amount of Rs. 13 lakhs as duty on 5-3-98 which is prior even to the date of show cause notice i.e., 15-3-99. Therefore, the penalty amount liable to be imposed on them is only 25% of the duty amount to be reworked out and confirmed on them as directed in the remand order of the Commissioner (Appeals) and on allowing them the benefit of exemption under Notfn. No. 84/94-C.E., dated 11-4-94. 5. Shri M.M. Dubey, JDR for the respondents/Revenue however argues that the grounds now being advanced by the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the value of Rs. 1,07,64,723/- to their five job workers. This amount is taken into consideration while computing the total turn over value of Rs. 1,26,81,339/- in respect of which the duty is demanded from the appellants after allowing them an exemption of Rs. 30 lakhs under Exemption Notfn. No. 1/93-C.E., dt. 28-2-93. The ld. Counsel for the appellants in support of his contention for availing the concession under Notfn. No. 84/94-C.E. is relying on the following decisions : (a) Mangalore Chemicals Fertilizers Ltd. v. Dy. Commissioner - 1991 (55) E.L.T. 437 (S.C.), (b) Facit Asia Limited v. Collector of Central Excise, Coimbatore - 1994 (3) RLT 325 (CEGAT-SRB) and (c) Bombay Silk Mills Ltd. v. Commissioner of Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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