2005 (1) TMI 501 - AT - Central Excise

Summary

Issues: Revenue's challenge to setting aside of revocation of Registration Certificate

In this case, the Revenue challenged the Order of the Commissioner (Appeals), Guwahati, which set aside the revocation of the Registration Certificate granted to the respondent company. The issue revolved around the cancellation of the Registration Certificate for a breach of sub-rule (5) of Rule 174 of the erstwhile Central Excise Rules, 1944, which mandated obtaining a fresh certificate when a registered person transfers their business to another. The Assistant Commissioner had revoked the certificate based on this breach.

The Appellate Tribunal, after hearing both sides, disagreed with the Commissioner (Appeals) and upheld the Assistant Commissioner's decision. The Tribunal noted that the termination of the Lease Deed and cessation of production should have prompted the respondents to surrender the Registration Certificate and seek de-registration, despite any challenges to the termination. The Tribunal distinguished the present case from the case law relied upon by the respondents, emphasizing that the contravention alleged in this case was under Rule 174 regarding the Registration Certificate, unlike the case cited by the respondents. The Tribunal also highlighted the Assistant Commissioner's application of Notification No. 35/2001-C.E. (N.T.), which allowed for revocation or suspension of a registration certificate in case of a breach of the Act or rules.

Ultimately, the Appellate Tribunal set aside the impugned Order and allowed the Revenue's appeal, reinstating the revocation of the Registration Certificate. The judgment clarified the legal provisions and the obligations of registered entities under the Central Excise Rules, emphasizing the importance of compliance with the rules governing registration and transfer of business.