ORDER
C. Satapathy, Member (T)
1. M/s Jaisingh Wires P Ltd (hereinafter referred to as ‘Jaisingh’) is a manufacturer of Copper/Aluminium Conductors, plastic electric insulated wires & cables of various grades falling under Chapter 74, 76 & 78 of the Central Excise Tariff. It was alleged that M/s Jaisingh were supplying goods to their inter-related units, M/s Polycab Cables Pvt Ltd and M/s Polycab Wires Pvt Ltd on the basis of normal invoice value and were not adopting Rule 8 of the Central Excise Valuation Rules, 2000, which stipulated that the value in such cases to be taken at One Hundred and Fifteen Percent of the cost of production of the goods. The differential duty amounting to Rs. 2,01,74,987/- was paid on 15.11.2001 & 15.12.2001. Accordingly, a show Cause Notice was issued on 28.10.2002 proposing confirmation of the duty already paid and imposition of penalty as the sort payment had occurred with intent to evade duty. Upon adjudication of the case, the Commissioner observed that the duty payment was withheld for a period exceeding one and half years and hence confirmed the demand of duty, especially when the unit was operating under the self removal procedure. He also confirmed the demand of interest under Section 11AB of the Central Excise Act, 1944 and imposed penalty equivalent to the demand of duty under Section 11AC of the Central Excise Act, 1944. He also imposed a penalty of Rs. Ten Lakhs on the Director of the Company under Rule 209A of the Central Excise Rules, 1944.
2. The Appellants submit that they have paid the differential duty on their own volition and not on the instructions of the department. It was pleaded that they had paid the duty and informed the jurisdictional Central Excise Authorities on 5.12.2001 itself and issued supplementary invoices for the amounts. It was submitted that there was no intent to evade duty and it was a case of pure oversight on the part of the Company.
3. Heard both sides. We find that the appellants had paid the amount short paid on account of incorrect valuation of the goods on their own without the department pointing out the error, which is evident from the fact that the Show Cause Notice was issued ten months after the payment of the duty. As such, while confirming the demand of duty and interest, we set aside the penalties. The appeal is disposed off in the above terms.