9911796707
TMI Blog2004 (12) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... sonal penalty of identical amount under the provisions of Section 11AC of Central Excise Act, 1944, read with Rule 173Q of erstwhile Rule of Central Excise Rules, 1944. In addition, personal penalty of Rs. 15 lakhs (Rupees fifteen lakhs) has been imposed upon the second appellants M/s. Pilot Cooking Gas Ltd., and of Rs. 15 lakhs (Rupees fifteen lakhs) on Shri Samir Ahmed Shaikh, Director of M/s. Silverchem Industries (Bombay) Pvt. Ltd., under the provisions of Rule 209A of Central Excise Rules, 1944. 2. As per the facts on records, M/s. Silverchem Industries (Bombay) Pvt. Ltd., are engaged in the manufacture of Liquified Petroleum Gas (LPG), hereinafter, referred to as LPG. The said LPG was being cleared by them on payment of duty and aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PG or C4 mix LPG, all the three are known as LPGs in the commercial market and are ready to use as Liquified Petroleum Gas, without carrying out any further process on the same. However, in case of Butane LPG when temperature is low, for example, during winter, then its pressure decreases and in such case the pressure of butane can be increased simply by mixing of Propane LPG with Butane LPG. It is the appellant s case that though the said blending of Butane LPG with Propane LPG does not amount to manufacture, nevertheless whenever such blended LPG was cleared by them, the duty was paid on the same after availing Modvat credit in respect of the LPG received by them from their suppliers. 4. The dispute in the present appeal relates to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dd Propane LPG into Butane LPG so as to increase the pressure of the same does not lead to inevitable conclusion that in all those cases, the appellants had undertaken the said activity. Wherever they have done so, they had paid the duty after availing the modvat credit. 5. We agree with the above contention of the ld. Advocate that the mere fact of having facility of blending two types of LPGs does not ipso facto lead to inevitable conclusion that such an activity has been carried out in respect of all the clearances. The records of M/s. Pilot Cooking Gas Ltd., have also not been examined and verified by the adjudicating authority. The agreement entered into between the two and what are terms and conditions of the same is also not availa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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