2003 (8) TMI 287 - AT - Central Excise

Summary

Issues:
- Appeal against duty demand and penalties imposed by the Commissioner (Appeals)
- Cross-objection filed by the respondent challenging the Department's grounds of appeal

Analysis:
1. Appeal against Duty Demand and Penalties:
- The case involved the Commissioner of Central Excise appealing against the order of the Commissioner (Appeals) regarding duty demand and penalties imposed on M/s. D.P. Wire Products for alleged clandestine removal of wire ropes.
- The Commissioner (Appeals) set aside a portion of the demand after verifying the weight discrepancy in the wire ropes and lorry receipt, reducing the duty demand by Rs. 1,44,428.
- The Commissioner of Central Excise appealed against this reduction in duty and penalties, seeking to set aside the order of the Commissioner (Appeals) and restore the original duty demand.
- The respondent, M/s. D.P. Wire Products, filed a cross-objection challenging the Department's grounds of appeal, arguing against the allegation of clandestine removal and supporting the duty relief granted by the Commissioner (Appeals).

2. Cross-objection by the Respondent:
- The respondent's cross-objection was considered by the Tribunal, with the respondent urging to treat it as an appeal against the entire order of the Commissioner (Appeals).
- The Tribunal clarified that a cross-objection is not a substitute for an appeal and serves the purpose of presenting counter-arguments against the Revenue's appeal.
- The Tribunal rejected the plea to treat the cross-objection as an appeal against the entire order, emphasizing the specific provisions of the Central Excise Act regarding appeals and cross-objections.

3. Decision and Disposition:
- After hearing both sides, the Tribunal upheld the duty relief granted by the Commissioner (Appeals) due to the weight discrepancy in the wire ropes and lorry receipt.
- The Tribunal found the reduction in redemption fine and setting aside of penalty under Rule 173Q to be disproportionately high compared to the duty reduction. As a result, the redemption fine was increased from Rs. 50,000 to Rs. 1 lakh.
- The Tribunal partially allowed the Revenue's appeal by adjusting the redemption fine but maintained the other reliefs ordered by the Commissioner (Appeals) as sufficient to meet the ends of justice.
- The cross-objection by the respondent was disposed of accordingly, with the Tribunal's decision addressing the issues raised by both parties comprehensively.