2002 (1) TMI 534

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.... fiction that such activity would amount to manufacture under Central Excise Act, 1944. Vide their letter, dated 4-3-94 addressed to the jurisdictional Central Excise Authorities, the appellants disclosed that they are clearing and manufacturing the small packs of detergent powder under the brand name - 'OK' owned by M/s. TOMCO, and claimed the benefit of Notification No. 1/93 till 31-3-94. Thereafter, with effect from April, 1994, the appellants started paying duty on the product in question by debiting the same from their Modvat Credit Account. 2. The appellants were issued a show cause notice on 27-3-95 raising the demand of duty for the period from 1-3-94 to 31-3-94 on the ground that whereas the appellants were required to pay ....

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....e by the appellants, but assails the quantification of the same. It is argued that the total duty paid by them during the said period, has been taken in the show cause notice as Rs. 27,67,128.95 as against the actual duty paid by them during the said period to the extent of Rs. 28,15, 271.26. As such, he submits that the amount of Rs. 6,91,597.00 confirmed by the adjudicating authority would come down by Rs. 48,142.31. He also draws our attention to another amount of Rs. 75,291.90 included in the confirmed amount which, according to him, is required to be deducted as the goods in question were not actually removed. Shri Bhattacharjee, further, submits that an amount of Rs. 2.25 lakhs was adjusted by the adjudicating authority towards duty o....

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....ave considered the submissions made from both sides. It is seen chat the duty for the first time was imposed on the re-packed small packages of detergent powder with effect from 1-3-94. The appellants have drawn our attention to a letter, dated 4-3-94 written to the Assistant Commissioner. A perusal of the said letter shows that the fact of packaging of detergent powder under the brand name of TATA's 'OK' was brought to the notice of the Assistant Commissioner. The said letter, further, prays that the benefit of Notification No. 1/93, should be extended to them upto 31-3-94, inasmuch as they have not reached the limit of Rs. 30.00 lakhs, though the brand name and trade name of other person, is used. It is seen that the appellants were never....