2005 (3) TMI 680

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..... : Jyoti Balasundaram, Vice-President]. The appellants herein who are manufacturers of electrical relays and parts, cleared goods, inter alia, during the period August, 2002 to July, 2003, to M/s. American Power Conversion (I) Ltd., Bangalore - an EHTP Unit - availing benefit of exemption in terms of Notification No. 1/95-C.E., dated 4-1-1995 as amended. As per the Notification, clearances we .....

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..... e obtained from the user unit. Show cause notice proposing recovery of Rs. 80,83,251/- and imposition of penalty was issued on the ground that the clearances of the relays not covered by CT-3 certificates at the time of their clearances were not eligible to the benefit of concessional rate of duty under the Notification, the demand was confirmed by the impugned order of the Commissioner of Central .....

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..... ed against the user industry according to Rule 20(3) of the Central Excise Rules, 2002 and not against the supplier i.e. the appellants. Duty liability on the appellants would arise only if the goods had not been warehoused. 3.In view of the above, we hold that the duty demand against the appellants is unsustainable and set aside the same together with the penalty. Thus the impugned order is set .....

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