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2004 (4) TMI 367 - AT - Central Excise
Issues:
Penalties imposed on appellants set aside by Tribunal; Recalling of order due to factual inaccuracy; Request for re-call of order on rectification of mistake; Merits of the case regarding imposition of penalties on companies and directors; Challenge against confirmation of demand of duty; Clubbing of values of two companies; Reduction of penalties on companies; Imposition of penalty on individual; Lack of evidence for penalty imposition on individual. Analysis: The Tribunal initially set aside the penalties imposed on all three appellants, noting that the proposal was only for directors and not companies. However, the Revenue later filed applications for modification, leading to the order being re-called due to factual inaccuracies regarding the proposal for penalties. The appellant's representative admitted that the show cause notice proposed penalties on both companies and directors, along with an individual legal officer. The appellant sought a re-call of the order passed ex parte for rectification of mistake and argued the case on merits. The Revenue opposed the recall request, asserting that the companies had accepted duty under-valuation and paid the same, justifying the penalty imposition. The Revenue supported penalties on the companies and an individual. The Tribunal found no justification for re-calling the order based on rectification of mistake applications. Regarding the merits, it was established that the two companies had mutual interests, leading to the conclusion that their values needed to be clubbed. The penalty on one company was reduced, while the penalty on the other company was upheld. The penalty on the individual was found unjustified due to lack of valid evidence showing involvement in the alleged activities. Conclusively, the penalty on one company was reduced, the appeal of the second company was rejected, and the appeal of the individual was allowed. The penalties were disposed of accordingly, with detailed reasoning provided for each decision.
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