2008 (2) TMI 747

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....t the appellant were manufacturing and clearing Chenille Fabrics without payment of duty. The said officers recorded the statement of the representative of the appellants. On 30-10-2002, the appellant informed that they have decided to pay the duty along with interest on the entire quantity manufactured by them up to 31-8-2002 and they paid the duty along with interest. A show cause notice dated 26-2-2003 was issued proposing the demand of duty and imposition of penalty and interest. The adjudicating authority confiscated the seized goods and an option was given to redeem the said goods on payment of fine of Rs. 50,000/-. He has also confirmed the demand of duty and appropriated the said amount as deposited by the appellant before issue of ....

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.... (P&H). 5. After hearing both the sides and on perusal of the records, it is seen from the adjudication order that there was bona fide mistake on the part of the appellant. The adjudicating authority observed that the appellants' manufacturing unit had been issuing regular challans to their sister concern in Delhi, who in turn, was selling the goods on regular invoice. These records were being submitted to the other Government Departments also. So, the adjudicating authority observed that there was no suppression of fact or wilful evasion of duty is established against the appellants and they are entitled to benefit of deemed credit on the inputs used in the manufacture of Chenille Fabrics. The Commissioner (Appeals) disallowed the ....