Per P.S. Bajaj :

This appeal has been preferred by the Revenue against the impugned order in appeal dated 11.10.99 passed by the Commissioner (Appeals) vide which he had reversed the order in original dated 4.12.97 confirming the duty demand of Rs. 85,771/- and imposing penalty of Rs. 2000/- on the respondents.

2. The facts giving rise to this appeal may briefly be stated as under :-

3. The respondents are engaged in the manufacture of sewing thread. They were also found to had manufactured wax washers from the duty paid paraffin wax procured from the market in their premises valued at Rs. 4,86,286.27 during the period October 1992 to February 1994 falling under sub-heading 9602.00 of the CETA and captively used the same without payment of excise duty amounting to Rs. 85,771/-. They were accordingly served with a show cause notice dated 13.10.95 vide which they were called upon to pay the duty amount and penalty was also proposed to be imposed on them. They, however, contested the correctness of that notice by alleging that they only melted the duty paid paraffin wax after purchasing from the market and put the same in the moulds to prepare washers for using in the winding machin