1997 (6) TMI 104

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.... Kilaniya, JDR, for the Respondent. [Order per : G.R. Sharma, Member (T)]. - The appellants procured Staple Fibre for conversion into yarn and subsequent export under the provisions of Rule 191B of the Central Excise Rules. The Department noticed that the yarn manufactured out of the staple fibre was not exported. Accordingly, a show cause notice was issued to the appellants asking them to e....

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....tate is the imposition of penalty. The ld. Counsel submits that the appellants had opted for working under provisions of Rule 191B; that Rule 191B provides for procurement of inputs without payment of duty for use in the manufacture of finished product proposed to be exported. He submits that the provisions of this Rule are clear inasmuch as levy of penalty is concerned. He submits that the Govern....

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....onversion into final product and export thereof is governed by the provisions of Rule 191B and therefore for the purpose of penalty, this rule should be taken into account. He submits that according to this rule, the maximum penalty cannot be more than Rs. 2,000/-. He, therefore, prays that the amount of penalty may be reduced to Rs. 2,000/-. 3. Shri Y.R. Kilaniya, ld. JDR appearing for th....