appellant assessee was availing exemption/refund of the excise duty under Notification No.32/99-CE dated 08.07.1999. During the course of audit by the Central Excise Officers, it is noticed that the appellants sold their finished goods including the cost of transportation which resulted in over-valuation of the assessable value of finished goods during the period from 16.07.2003 to 31.03.2005, thus, contravening the provision of section 4 of the Central Excise Act, 1944 read with Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 and Notification No.32/99-CE (supra) (as amended) which resulted in excess refund to the appellants. Show cause notice 02.05.2005 was issued proposing to recover the Central Excise duty amounting to Rs.14,91,094/- refunded to the appellants along with interest and for imposition of penalty. The adjudicating authority dropped the demand of Rs.7,81,794/- and confirmed the demand of duty of Rs.7,09,300/- and ordered for recovery of the same along with interest. On appeal, the Commissioner (Appeals) rejected the appeal. Hence, the present appeal before the Tribunal.
