TMI Blog2000 (8) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... onging to a State Govt. and are intended for use by any department of that Govt. 2.They were issued a show cause notice dt. 2-11-1995 and corrigendum dt. 24-1-1996 calling upon them to show cause to the Commissioner of Central Excise, Allahabad why Rs. 19,35,641/- as duty not paid should not be recovered from them under the proviso to Section 11A(1) of Central Excise Act, 1944 and why a penalty should not be imposed on them under Rules 9, 173Q, 210 and 226 of the Central Excise Rules, 1944. This duty is demanded in respect of the goods (PCC Poles) cleared by the noticees during the period from 10-6-1992 to 31-3-1993 at concessional rate of duty under Notifications No. 175/86, dated 1-3-1986 and No. 1/93, dated 28-2-1993 and without paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority held that the party was owned and controlled by UPSEB, an autonomous Board, which had other PCC Pole manufacturing units at Roorkee, Agra, Lucknow, Gorakhpur and Allahabad. It is observed that since the party is owned and controlled by UPSEB a large-scale undertaking, it ceases to be an SSI unit by virtue of Notification No. SO 232(O), dated 2-4-1991 issued under Section 11B of IDRA. Thus he held that the party wrongly availed SSI benefits during the impugned period. He also held that the party intentionally suppressed material facts with an intention to evade payment of duty. Consequently he confirmed the demand of Rs. 19,35,641/Z on the party and also imposed a penalty of Rs. 50,000/- on them. 4.The appeal of the party before Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant period had exceeded the upper limit of Rs. 30 lacs prescribed for exemption under these notifications, they are willing to pay the duty for the clearances made above this amount but he pleaded that no penalty is liable to be imposed on them. Shri M.P. Singh, JDR for the Revenue, reiterated the findings arrived at in the order of the original authority and as confirmed in the order of Commissioner (Appeals). 6.We have carefully considered the submissions made before us. As already stated, Notification No. 74/93-C.E., dated 28-2-1993 exempted the goods from whole of duty of excise manufactured by a factory belonging to a State Government if such goods were intended for use by any Department of that Government. The appellants are a par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of eligibility for exemption under Notification No. 1/93. We also observe that the reference made by the ld. Commissioner (Appeals) to the Allahabad High Court in W.P. No. 100/84 does not clarify the position where the issue relating to claim for exemption under Notification No. 1/93 or any of its predecessor notification." "The fact that the Hon'ble High Court had held that UPSEB would not come within the purview of 'State' within the meaning of the Article 12 of the Constitution does not necessarily follow up that the UPSEB constituted under Section 5 of the Electricity (Supply) Act, 1948 will not be a State Government Undertaking or a Corporation owned or controlled by the State Government." 7.Further, the provisions of Section 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /86 and its successor Notification No. 1/93. This benefit is denied to them on the ground that as per Notification No. SO-232 (O) dt. 2-4-1991 issued under Section 11B of the IDRA, they cease to be a SSI unit. In this regard it is observed that the provisions of the IDRA or the notification issued under it do not find any mention in the impugned Central Excise notifications nor have they any relevance to them. The availability of exemption under these notifications would depend entirely on the provisions specified therein. The reference to the IDRA provisions by the departmental authority in this respect, therefore, is entirely misconceived and not sustainable in law. The appellants, however, contend that during the relevant period (1992- ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
