JUDGMENT

Arijit Pasayat, J. — Challenge in this appeal is to the decision of the Central Excise and Gold Control Appellate Tribunal, New Delhi (in short the Tribunal) holding that the authorities had rightly denied small scale exemption to Reiz Electrocontrols Pvt. Ltd. (in short the REPL) and Reiz Enterprises (in short the RE). It was further held that the demands of duty from them and imposition of penalty as well as interest levied under Central Excise Act, 1944 (in short the Act) and Central Excise Rules, 1944 (in short the Rules) do not suffer from any infirmity. However, the case was remanded to the jurisdictional Commissioner for re-computing the duty demands and re-determining penalty. However, in the light of observations made, penalties imposed on Shri Atul Agarwal and Sh. Siddarth Agarwal under Rule 209A were set aside.

2. The back ground facts in a nutshell are as follows:

M/s RE is a proprietary concern of Shri Atul Agarwal and is engaged in the manufacture of Electronic Fan Regulators, Dimmers and Remote Control Switches under the brand name REIZ since 1988. In the year 1993, M/s REPL was constituted with Shri Atul Agarwal and his two brothers Shri Siddarth Agarwal