2001 (7) TMI 548

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....pplied to an independent buyer without allowing any discount. Accordingly, they were issued a show cause notice dated 13-2-1996 in which it is alleged that the appellants had allowed the stated discount to their sister concern without establishing by any acceptable evidence of the criteria at which the discount is allowed. It was alleged that inasmuch as they had allowed the "Special Discount" of Rs. 14,705.28 in violation of the provisions of Section 4 of the Central Excise Act, 1944, they have evaded the payment of excise duty amounting to Rs. 2,205.78. Therefore, they were called upon to show-cause as to why the Central Excise duty of the aforesaid amount should not be recovered from them under Section 11A and why a penalty should not be....

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....ods supplied by them to their sister concern. Accordingly, the Assistant Commissioner has confirmed the demand of Rs. 2,205.78 on the appellants and has also imposed a penalty of Rs. 1,000/- on them. 3. The party filed an appeal but the same stood rejected by the Commissioner (Appeals) of Central Excise, Calcutta vide his order dated 18-9-2000. 4. The present appeal is against the above order of Commissioner (Appeals). We have heard Shri B.N. Chattopadhyay, ld. Consultant for the appellants and Shri A.K. Chattopadhyay, ld. JDR for the respondent. Ld. Consultant for the appellants does not dispute that the buyer in this case, viz., M/s. Paper Machine Wire Industries is their sister concern under the same group of Companies. He wo....