2016 (11) TMI 1215

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....e, Kanpur. 2. The brief facts of the case are that the appellant PEE CEE Cosma Sope Ltd., are engaged in manufacture and clearance of Laundry Soaps falling under chapter heading 34011942 Chapter Heading No.3401.11 of the first schedule to the CET Act. The appellant, who were earlier using wood fired furnace for heating the ingredients for manufacture of soap switched on to natural gas during the period under dispute being January, 2002 to February, 2006. Show Cause Notice dated 17/07/2006 was issued invoking the extended period of limitation as it appeared to revenue that the use of natural gas or gas for heating, in manufacture of the soap, is use of power for manufacturing and accordingly, the appellant is liable to pay Excise Duty on th....

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....n the Factory Act, 1934, of the Government of India - 'I presume that neither the GAS welding nor electric welding of steel furniture parts will constitute use of power'. 4. The SCN was adjudicated and the proposed demand was confirmed amounting to Rs. 9,40,43,236/- along with equal amount of penalty under Section 11 AC read with Rule 25 of CCR. Further, confiscation of 111366 KG of Doctor Brand Laundry soap valued at Rs. 22,31,993/- seized on 24/01/2006, was also made with option to redeem on payment of redemption fine of Rs. 7 lakhs. Further, penalty of Rs. 1.00 lakh was imposed under Rule 25 (b) (c) and (d) of CER, 2001-2002. Further, penalty of Rs. 5 Lakhs was imposed on the Managing Director, Shri Mahendra Kumar Jain, penalty of Rs. 5....