2002 (6) TMI 550

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....lty, and also imposed penalties on other two appellants as detailed in the order itself. 2. The firm, appellants No. 1, was engaged in the manufacture and sale of I.C. Diesel Engines and Diesel Generating Sets. The factory premises of the firm, appellants No. 1, was visited on 15-11-1997 and the officers of the Central Excise resumed some records and also seized excess stock 63 of Brand Engines and 18 D.G. Sets. The statement of Shri Radha Raman Garg was also recorded. From the examination of the record, it revealed that the appellants had suppressed the production of the engine during the period 1-4-1997 to 14-11-1997. Some loose invoices were also seized vide which the goods were allegedly cleared and it also came to the notice of....

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....e heard both sides and gone through the facts on record. 4. The learned Counsel for the appellants, at the outset, had contended that the duty demand raised for the period 1-4-1997 to 14-11-1997 through the show cause notice dated 26-6-2000, is apparently time barred and that no extended period could be invoked legally as the Modvat credit available to the firm, appellants No. 1, was at much higher rate than the rate at which the duty was payable on the clearance of the finished goods, i.e. diesel engine and D.G. sets. The impugned order, according to the learned Counsel is liable to be set aside on this short ground alone. In support of his contention, the learned Counsel has placed reliance on Associated Cement Cos. Ltd. v. CCE, C....