2012 (9) TMI 532

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....ent of fine of Rs. 30,000/- and imposing penalty of Rs. 8,79,348/- under Section 11AC in respect of demand relating to the period 28-9-1996 to 31-3-1997 and also imposing penalty of Rs. 10,000/- under various Rules of Central Excise Rules, 1944. 2. Heard both sides. 3.1 The appellant had bought various colour oxides and sold them either as such or after repacking them in small packings in their premises at Calicut. The appellants also had branches at Ernakulam, Mangalore, Bangalore and Coimbatore. Samples were drawn from various products sold by them from Calicut branch of the appellants and sent to the Chemical Examiner at Cochin. In respect of products declared as 'Microfined Red Oxide' and 'Microfined Jet Black Oxide', th....

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.... accept the classification claimed by the appellants. He also did not accept the claim for exemption under Notification No. 1/93 on the ground that the assessee had not produced any evidence regarding the value of clearance of goods in respect of the other branches at Ernakulam, Mangalore, Bangalore and Coimbatore which have undertaken repacking of different colour oxides. Based on the said findings, he confirmed the demand of duty and imposed penalties as mentioned earlier. 4. The learned advocate for the appellant contests the demand claiming that the goods received by them for repacking were classified originally by the manufacturer under Chapter Heading 2821. Further, they have produced test results of samples tested in 1999 fro....

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....ing 3206.90 as held by the Commissioner. 6.2 Regarding the claim of the appellant for the benefit of Notification No. 1/93 dated 28-2-1993, we find that the Commissioner has denied the exemption with the following findings :- "12. The assessee has further contended that they are eligible for exemption under Notification No. 1/93, dated 28-2-1993. The statement dated 2-7-1997 of the Managing Director of the assessee reveals that the assessee has branches at Ernakulam, Mangalore, Bangalore and Coimbatore and repacking of different colour oxides were carried out in those branches. The assessee has not produced any evidence regarding the value of clearance of goods in the above branches so as to make them eligible for the exempt....