Cce, Patna Vs. M/S. Hari Nagar Sugar Mills Ltd. - Court Judgment

Excerpt:

1. the present appeal of the revenue is against the order of commissioner(appeals) vide which he has set aside the penalty imposed upon the respondents under the provision of rule 209a on the ground that triveni engg.ltd. has installed a turbo alternator at their premises without payment of duty and the respondents were in knowledge of the non-dutiable character of the turbo alternator. the commissioner(appeals) has set aside the penalty on the ground that the knowledge on the part of m/s. hari nagar sugar mills has not been proved and as such rule 209a is not applicable.2. after hearing shri chaturvedi, id.sdr i find that the issue as regards the excisability of turbo alternator is set at rest by the hon'ble supreme court in the case of triveni engg.ltd. itself. it has been held that assembly and erection of turbo alternator at site does not bring into existence a new excisable items. as such i do not find any infirmity in the order passed by the commissioner(appeals) vide which he has set aside the imposition of penalty imposed upon the respondents herein. the revenue's appeal is accordingly rejected. cross objection filed by the respondents is also disposed of.

Judgment:

1. The present appeal of the Revenue is against the order of Commissioner(Appeals) vide which he has set aside the penalty imposed upon the respondents under the provision of rule 209A on the ground that Triveni Engg.Ltd. has installed a turbo alternator at their premises without payment of duty and the respondents were in knowledge of the non-dutiable character of the turbo alternator. The Commissioner(Appeals) has set aside the penalty on the ground that the knowledge on the part of M/s. Hari Nagar Sugar Mills has not been proved and as such rule 209A is not applicable.

2. After hearing Shri Chaturvedi, Id.SDR I find that the issue as regards the excisability of turbo alternator is set at rest by the Hon'ble Supreme Court in the case of Triveni Engg.Ltd. itself. It has been held that assembly and erection of turbo alternator at site does not bring into existence a new excisable items. As such I do not find any infirmity in the order passed by the Commissioner(Appeals) vide which he has set aside the imposition of penalty imposed upon the respondents herein. The Revenue's appeal is accordingly rejected. Cross objection filed by the respondents is also disposed of.