2002 (2) TMI 609 - AT - Central Excise

Summary

Issues:
1. Central Excise duty liability for manufacturing forgings and brass rods without registration.
2. Penalty imposition under Section 11AC and Rule 173Q.
3. Applicability of exemption notifications and penalty regulations.
4. Consideration of procedural requirements for exemption claims and penalty imposition.

Central Excise Duty Liability:
The appellants were found manufacturing forgings and brass rods without Central Excise Registration. The authorities issued a show cause notice alleging clearance of excisable goods without payment of duty. The Addl. Commissioner confirmed a duty of Rs. 13,06,749/- and imposed an equal penalty. The Commissioner (Appeals) directed reassessment of the duty and penalty based on the assessable value of the goods, leading to a reduction in the duty amount.

Penalty Imposition:
The Addl. Commissioner imposed a penalty under Section 11AC on the appellants, which was revised by the Commissioner (Appeals) considering the reduced duty amount. The penalty on the other noticee, Shri Suresh Kumar Dabas, was not upheld.

Exemption Notifications and Penalty Regulations:
The appellants argued for exemption under Notfn. No. 84/94-C.E. for goods supplied to job workers and for penalty reduction under amended Section 11AC provisions. The Revenue opposed these claims, stating non-compliance with conditions for exemption. The appellants cited legal precedents supporting substantive right to exemption despite procedural lapses.

Procedural Requirements for Exemption Claims and Penalty Imposition:
The appellants' contentions regarding exemption and penalty regulations were not raised before the original authority or the Commissioner (Appeals). The Tribunal allowed the appeal by remanding the case to the original authority to consider these submissions along with existing directions, providing a fair hearing to the appellants.

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