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2018 (7) TMI 1522 - CESTAT MUMBAIDutiability - process of printing amounting to manufacture - benefit of N/N. 7/2003 dated 01.03.2003 denied - Whether in the facts of the case the appellants were entitled for the exemption under the N/N.7/22003-CE dated 01.03.2003? - Whether the Penalties were imposed correctly against them? Held that:- Sr.No.3 of the said notification exempts goods specified therein processed without the aid of power or steam, with or without using of machines. There is no explanation has been inserted below Sr.No.3 so as to deem that lifting of water etc and mixing of dyes etc by stirrer the said fabrics have been processed without the aid of power or steam. Thus the units who are engaged in processing or printing of MMF using power operated pumps for lifting water or using power operated stirrer for mixing the dyes are not eligible to claim the exemption under said Notification. Penalties - Held that:- Considering the facts that the proprietor and the firm are one and the same, the imposition of penalty on M/s Neelam Prints as well as proprietor Shri Iftikhar Ahmed was not called for. Therefore, the penalty of ₹ 1,70,108/- imposed on Shri Iftikhar Ahmed is set aside. As regards enhancement of penalty to ₹ 10,000/-, Rule 25 prescribes the maximum amount of penalty which can be imposed and it is not a mandatory penalty. Therefore, enhancing of penalty to ₹ 10,000/- is set aside - The penalty imposed upon M/s Neelam Prints under Section 11AC being mandatory in nature cannot be reduced and is upheld. Appeal allowed in part.
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