2008 (3) TMI 227

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndents were engaged in the manufacture of doubling of yarn and the same was exempted from duty prior to 1-4-2003. On 13-11-2003, the Central Excise Officers visited the Respondent's factory and found that the Respondent were manufacturing the said goods without obtaining the Central Excise Registration and cleared the goods without payment of duty. They also seized 250 Kgs. of 100% Viscose Yarn lying at the factory premises. The Adjudicating Authority confiscated the seized goods and imposed redemption fine of Rs. 10,500/- and also imposed penalty of Rs. 10,000/- under Rule 25 of Central Excise Rules. He has also confirmed demand of duty of Rs. 2,43,841.00 and imposed penalty of equal amount under Section 11AC of Central Excise Act, 1944 al....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pon the decision of the Tribunal in the case of CCE, J & K (Jammu) v. M/s. Basantar Foundary & Fabrications -Final Order No. 351/2006-EX, dated 28-3-2006. He further submits that the Commissioner (Appeals) considered the facts and circumstances of the case and thereafter allowed the Cenvat benefit and reduced the penalty. He relied upon the decision of the Hon'ble Supreme Court in the case of T.N. Housing v. Collector of Central Excise reported in 1994 (74) E.L.T. 9 (SC). 5. After hearing both the sides and on perusal of the records, it is seen from the Adjudication Order that exemption was withdrawn on doubling of yarn w,e.f. 1-4-2003 and the Respondent being a Small Scale Unit, were not aware of the change in the Law. It is also noted th....