TMI Blog2018 (3) TMI 1705X X X X Extracts X X X X X X X X Extracts X X X X ..... being job work charges collected by the appellants. However there is failure on the part of the appellant's to take care to follow the prescribed procedure or as prescribed under N/N. 214/86-CE, and due to this reason they have become disentitled for the exemption Notification. There is no mala fide and/or contumacious conduct on the part of the appellants in not paying the duty at the time of clearance. Penalty u/s 11AC set aside - the penalty imposed on the other two appellants- Directors Shri Shubash Chand Gupta and Shri Sharad Chand Gupta under Rule 209-A of Central Excise Rules, 1944 read with Section 308A of the Central Excise Rules, 1944 is also set aside - appeal allowed in part. - APPEAL Nos. E/1436 - 1438/2008-EX[SM] - FINAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the appellants have considered as job work was dutiable and such clearances were effected in contravention of the Central Excise Rules and accordingly they are liable to pay duty as well as penalty. 2. It had been alleged in the show cause notice that in respect of clearances in the guise of job work follow-up action was taken in respect of suppliers to whom appellants had supplied Paper Tubes/Core on job work. It was revealed that two of the firms namely M/s Omar Trading Company and M/s Laxmi Paper Tube were non-existent. In the case of remaining two firms namely M/s Nevel [Calcutta] Pvt. Ltd. and M/s Balaji Straw Mills Pvt. Ltd., it was revealed that these firms do not deal in Paper Tubes/Core. Both these firms were in fact manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rers of Kraft Board since 1998 and had supplied Kraft Board to appellants vide invoices for the purpose of converting it into Paper Tubes required by them for the purpose of packaging of Reel Sheet manufactured by them. The said Director also tendered signed copy of Ledger account of the appellants debiting the payment details pertaining to the job work with respect to the invoices along with copies of invoices and job work challan issued in their name by the appellants covering the final material supplied to them, resumed by the officers. It is further recorded that the Kraft Board received by the appellants after being converted into Paper Tubes/Core was returned to the said M/s Nevel [Calcutta] Pvt. Ltd. by challan/bill as if it is cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is marked as job work and there being job work charges collected by the appellants. However there is failure on the part of the appellant's to take care to follow the prescribed procedure or as prescribed under Notification No.214/86-CE, and due to this reason they have become disentitled for the exemption Notification. Accordingly have been held liable for payment of duty. Under these facts and circumstances, I hold that there is no mala fide and/or contumacious conduct on the part of the appellants in not paying the duty at the time of clearance. Accordingly, I set aside the penalty imposed under Section 11AC of the Act. Accordingly, the penalty imposed on the other two appellants- Directors Shri Shubash Chand Gupta and Shri Sharad Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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