2002 (2) TMI 595

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....t. Shri M.P. Singh, JDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. -  Ms. Reena Khair, learned Advocate submitted that in view of the availability of the Modvat credit of the duty paid on inputs, the demand confirmed against M/s. Mahabir Prasad and Sons is not being contested; that in the present two appeals only the penalty imposed on both the Appellants are being ....

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....hen the assessee is eligible to claim Modvat credit, which is more than duty liability. Reliance was also placed on decision in the case of D.K. Ariwalla v. CCE (Adjudication) 2001 (138) E.L.T. 684 wherein it was held that if the demand invoking the extended period is not upheld, penalty under Section 11AC would not sustain. She further submitted that as far as penalty imposed on Shri Prem Gupta, ....

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.... duty; that accordingly the provisions of Section 11AC of the Central Excise Act are invokable. 3. We have considered the submissions of both the sides. As the Appellants have not challenged the demand of Central Excise duty, we uphold the demand amount of Rs. 9,10,709/- as demanded by the Adjudicating Authority and confirmed by the Commissioner (Appeals) in the impugned Order. We observe ....

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..... I find that this is also based on the statement made by Shri Jawahar Lal, Supervisor-cum-Clerk, recorded on 12-5-98 and on the admission of Director, Shri Prem Prakash Gupta on 1-7-97. In the course of Adjudicating proceedings however this has been denied. I find on behalf of Shri Gupta, Managing Director, it has been submitted that he was not concerned with the day-to-day working of the unit, y....