Nagpur Business Forms Pvt. Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai)
This appeal is directed against order-in-appeal No AGS/381/NGP/2011 dated 08.09.2011 of the Commissioner (Appeals), Central Excise, Nagpur. By the impugned order, the Commissioner (Appeals) upheld the order-in-original No 20/AKG/ADC/CEX/2011 dated 14.01.2011 of Additional Commissioner, Nagpur holding as follows:
i. “I hold the goods manufactured by the Noticee viz LIC forms, Inland Letter for LIC, Premium intimation letter of LIC, Bank Statement forms & stationeries for other purposes for LIC, Insurance, Banks, Government organization and other continuous stationary for various Government department stands classified under Chapter Sub Heading No 4820 40 00 of the Central Excise Tariff Act, 1985 and accordingly confirm the demand of Rs 33,06,758/- (BED 32,10,445/- + Edn Cess Rs 64, 209/- + SHE Cess Rs 32,104/-) (Rupees Thirty Three Lakhs Six Thousand Seven Hundred and Fifty Eight only) and order its recovery under the provisions of Section 11A of the Central Excise Act, 1944
ii. I order recovery of interest at appropriate rate against the said confirmed demand under Section 11AB of Central Excise Act, 1944 from the Noticee.
iii. I impose a penalty of Rs 33,06,758/- Rupees Thirty Three Lakhs Six Thousand Seven Hundred and Fifty Eight only) under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944.”
2.1 Appellants are engaged in the manufacture of various Computer Stationeries, LIC Forms, Bank Statement Forms as per the requirement of LIC, Banks & Govt department as per the requirements of LIC, Bank and Government department, falling under chapter sub heading 482040 of Central Excise Tariff Act, 1985 and paying duty accordingly. They had vide their letter dated 08.05.2009 intimated that these goods as per them more appropriately get classified under heading 4901, attracting “Nil” rate of duty and have accordingly discontinued payment of duty on these goods from 01.05.2009.
2.2 For the period 01.05.2009 to 31.05.2009, the duty amounting to Rs 1,04,276/- along with interest, in respect of the goods cleared without payment of duty, was adjudicated and confirmed by the jurisdictional Assistant Commissioner vide his Order in Original No 06/NGP-1/2010 Dem dated 08.02.2010.
2.3 The appellants have during the period from 01.06.2009 to January 2010, cleared the goods without payment of duty thereby not paying the duty amounting to Rs 33,06,758/-.
Accordingly a show cause notice dated 30th June 2010 was issued to them asking them to show cause as to why-
i. “Central Excise duty amounting to Rs 33,06,758/- (BED 32,10,445/- + Edn Cess Rs 64, 209/- + SHE Cess Rs 32,104/-) (Rupees Thirty Three Lakhs Six Thousand Seven Hundred and Fifty Eight only) as detailed in Annexure “A” attached herewith should not be demanded and recovered from them under the provisions Section 11A of the Central Excise Act, 1944.
ii. Interest payable on the amount as would be determined should not be recovered from them under Section 11AB of the Central Excise Act, 1944.
iii. Penalty under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 should not be imposed on them.”
2.4 Show Cause Notice was adjudicated by the Additional Commissioner as per his order referred in para 1, supra.
2.5 Aggrieved appellant filed an appeal before Commissioner (Appeal), which was dismissed as per impugned order referred in para 1, supra.
2.6 Aggrieved the appellants have filed this appeal.
3.1 We have heard Shri Mayur Shroff, Advocate for the Appellants and Ms Anuradha Parab, Assistant Commissioner, Authorized Representative for the revenue.
3.2 Arguing for the Appellants learned Counsel submitted that-
> They undertake the printing jobs as per the requirements of the customer. The products of printing industry are specifically covered under Chapter 49 as per Chapter Note 12 to Chapter 48.
> The issue involved in the matter is no longer res-integra and decided in series of decisions as follows:
