2016 (2) TMI 714

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....Tooling was engaged in the manufacture of Tool Holders and Boring Bars. During the financial year 2006-07, he was availing the small scale exemption benefit in terms of Notification No. 8/2003-C.E., dated 1-3-2003, which granted total exemption to the first clearance of Rs. 1,00,00,000/- (Rupees One Crore only). However the appellant crossed the said exemption limit on 13-2-2007. However, without realizing that they have crossed the said exemption, they continued to clear their final product without payment of duty. 3. In the month of April, 2007, when the appellant conducted the audit of their records, on their own, they realized that they have crossed the said exemption limit by Rs. 41.75 lakhs (Rupees Forty One Lakhs Seventy Five....

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....ct was not warranted. He accordingly set aside the same. However he upheld the penalties imposed under Rule 25 and Rule 26 on the present appellants, on the ground that they have admittedly contravened the provisions of the Central Excise Act. 6. The said impugned order of Commissioner (Appeals) is challenged by the appellants before the Tribunal. Revenue is also in appeal against that part of the impugned order vide which Commissioner (Appeals) set aside the penalty under Section 11AC. 7. I have heard both the sides duly represented by Mr. Pradyumna G.H, Advocate and Mr. N. Jagdish, DR. There is no dispute about the fact that the mistake of crossing the exemption limit of Rs. 1,00,00,000/- (Rupees One Crore only) was detect....