9911796707
TMI Blog2004 (2) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 39.26 as confirmed by the Commissioner in the impugned order. 2. We heard Shri Mihir G. Thakur, learned Advocate for the appellants, and Sh. Vikas Kumar, learned S.D.R. for the Revenue. It was fairly mentioned by both the learned Advocates and the learned S.D.R. that the question regarding classification of tarpaulin has been settled by this Tribunal in the case of M/s. Gujarat Raffia Industries Ltd. v. C.C.E., Ahmedabad vide Final Order No. 26/03-B, dated 14-1-2003 [2003 (153) E.L.T. 336 (T)] by which it has been held that tarpaulin is appropriately classifiable under Heading 39.26 of the Tariff. Accordingly, following the ratio of the said decision, we hold that the Tarpaulin, manufactured by the appellants using the raw-material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut challans and, therefore, the duty of Rs. 1,34,918/- has rightly been confirmed; that the finished goods, which were found in excess, are also liable to confiscation as the same had not been entered in the statutory records; that the redemption fine of Rs. 5 lakh, in respect of goods more than Rs. 18.57 lakh, is not on the higher side; that penalty on other two appellants, being Director and Excise Officer and Authorised Signatory, is also imposable under Rule 209A of Central Excise Rules as they were dealing with Central Excise matters directly and they had knowledge that no excisable goods can be removed unless appropriate Central Excise duty has been discharged and if duty has not been discharged, the goods are liable to confiscation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 1944. Therefore, the penalty imposed on account of wrong classification and consequentially non-payment of duty on tarpaulin is set aside. The demand of Rs. 1,34,918/-, in respect of inputs found short, is confirmed as the said inputs had not been used in or in relation to the manufacture of the final products. Penalty is also to be imposed for availing the Modvat credit in respect of inputs which have not been used in or in relation to the manufacture of the final products. We observe that the Commissioner has imposed penalty equivalent to the amount of duty, which is not warranted. We, therefore, reduce the penalty from 1,34,918/- to Rs. 20,000/-. Regarding finished goods, found in excess, it has been mentioned in the Memorandum of A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
