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2003 (2) TMI 334 - AT - Central Excise
Issues:
1. Central Excise duty liability under Section 3A or Section 3 of the Act for M/s. SPL Industries Ltd. 2. Imposition of penalties under Section 11AC of the Act and related Rules on the appellant-company and other Appellants. Analysis: 1. The appellant-company contended that they were paying duty under the Compounded Levy Scheme but faced a demand for duty and penalties for not being entitled to the scheme. The Commissioner confirmed the demand and penalties, which were later remanded for fresh adjudication. The Commissioner, in the impugned Order, upheld the demand and penalties, including on the directors. The Tribunal noted the issue of Notification No. 2/99-C.E., dated 13-1-1999, and the applicability of the scheme to the appellant's products. The Tribunal emphasized that the Commissioner's jurisdiction in remand proceedings is limited and held that no penalty could be imposed beyond the remand scope. The Tribunal also highlighted the rejection of the Revenue's appeal against the earlier Order due to a filing delay. 2. The Departmental Representative argued suppression of facts by the Appellants to evade duty payment, as they did not disclose their involvement in fabric knitting post the issuance of Notification No. 2/99. The Tribunal reviewed the Compounded Levy Scheme criteria and the impact of the amendment in the notification on the appellant's eligibility. It was established that the Appellants, having proprietary interest in fabric knitting, were no longer covered under the scheme. The Tribunal further examined the duty payment timeline, the effect of the notification amendments, and the retrospective application of penalties. It concluded that no differential duty was chargeable from the appellant-company and, therefore, no penalties were justified. The Tribunal emphasized that in remand proceedings, the authority cannot enhance duty or penalties unless specified in the remand order, thus allowing the appeals of all Directors. In conclusion, the impugned Order was set aside, and the appeals were allowed by the Tribunal.
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