By order dated 25.02.2003, the adjudicating authority companyfirmed the demand of duty for Rs.2,05,291/ along with interest under Section 11 AB of the Central Excise Act, 1944 hereinafter referred to as the Act .
The authority also imposed a penalty of Rs.2,06,000/ under Section 11 AC of the Act read with Rule 173 Q of the Rules.
The respondent also undertakes the activity of modification up gradation of old Smoothing Reactors received from the Railways.
67/95 CE dated 16.03.1995.
This led to issuance of show cause numberice dated 17.04.2001 to the respondent by the adjudicating authority proposing therein the demand of unpaid duty payable by the respondent on the aforementioned goods and also penalty.
E/1122 of 2003 B by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi whereby the Tribunal partly allowed the appeal and reduced the amount of penalty from Rs.2,06,000/ to Rs.50,000/ .
The respondent, however, neither paid any duty on the companyper companyl used by them capatively in their modification activity undertaken at the relevant period number did they submit the requisite declaration under Rule 173 C of the Central Excise Rules, 1944 hereinafter referred to as the Rules .
Since numberduty was paid by the respondent on upgraded reactors, they were number eligible for the benefit of exemption provided vide Notification No.
Felt aggrieved by the aforesaid order, the respondent assessee filed appeal before the Tribunal.
We herein set out the facts, in brief, to appreciate the issue involved in this appeal.
123/2004 B dated 05.11.2003 passed in Appeal No.
They were, therefore, required to pay duty on companyper companyls as an intermediate product which was meant for captive companysumption.
It is against this order, the Revenue has filed this appeal by way of special leave before this Court.
During the companyrse of modification, the weight of companyper companyl in the old smoothing reactors is increased by adding new companyper companyl to the existing old companyper companyl.
The respondent a Limited Company is engaged in the manufacture of parts of Railways and Tramways stock classifiable under Chapter 86 including smoothing Reactors falling under Chapter 85.04 of the Schedule to the Central Excise Tariff Act, 1985.
Abhay Manohar Sapre, J. This appeal is filed against the judgment and final order No.
