2000 (8) TMI 442

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....ere manufacturing excisable goods claiming the benefit of Notification No. 175/86-C.E. The goods cleared by them without payment of duty included Evaporating and Condensing units classifiable under sub-heading 8415 and 8419 which products were excluded from the benefit of the said notification. These goods when cleared during the period 1991-92 in fact were liable to payment of duty. Thus duty was quantified at Rs. 3,12,998.40. 3. Such coils were made by M/s. Gopi Electronics during the year 1992-93. These goods were supplied by them to M/s. H.M.T.D. Engineering who in turn sold to the Railways. At the material time Notification No. 75/87 was in existence. This Notification gave conditional exemption to these goods when manufactured....

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....said notification. Having confirmed such dues against M/s. HMTD Engineering and M/s. Gopi Electronics the ld. Collector imposed penalties of Rs. 50,000/- on M/s. HMTD Engineering and of Rs. 40,000/- on M/s. Gopi Electronics and of Rs. 20,000/- on Shri S. Balakrishnan, Managing Director of M/s. HMTD Engineering. Hence these appeals. 4. Appeal Nos. E/4606 & 2629/95 SB(WR) were argued by Shri Sahasrabudhe. He clarified that he was confining his argument only to the imposition of penalty. He stated that the assessees did not have any malafide intention and that this happened only on account of wrong interpretation of the subject notification. As regards the Managing Director, he submits that proceedings do not bring out any culpability ....