2008 (4) TMI 247

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....ief in terms of Section 4(4)(d)(ii) of the erstwhile Central Excise Act, 1944 considering the total realization for the clandestine clearances found against the assessee as cum-duty value. He modified penalty on the appellant-firm from Rs. 3 lakhs to Rs. 75,000/-. He vacated penalty of Rs. 50,000/- imposed under Rule 209A of the Central Excise Rules on one Shri N. Ramachandran by the original authority. 2. The facts of the case are that during 1-4-96 to 31-3-97 the assessee M/s. Poly Spinning Mills had cleared excisable goods 'HDPE sacks' without payment of duty. The assessee had claimed that they were eligible for the SSI exemption in respect of the said clearances. The original authority had found that the assessee had taken Modvat cre....

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....o deny SSI benefit availed in the year 1996-97 was barred by limitation. It is also submitted that Shri N. Ramachandran who was in no way connected with the assessee firm was penalized under Rule 209A of the erstwhile Central Excise Rules, 1944 without any justification. The Counsel prays that the impugned order may be set aside. The Revenue has filed two appeals seeking to restore the penalty imposed by the original authority and to deny the benefit under Section 4(4)(d)(ii) allowed by the lower appellate authority. Another prayer is to restore the penalty imposed on Shri N. Ramachandran. It is submitted that the assessee and Shri N. Ramachandran are habitual offenders. 6. We have considered the case records and heard the submissions ma....