2005 (5) TMI 419 - AT - Central Excise

Summary

Issues:
1. Rectification of Mistake application filed by Revenue against Tribunal Final Order.
2. Allegation of suppression of facts with intent to evade duty.
3. Imposition of penalty under Section 11AC of the Central Excise Act.

Issue 1: Rectification of Mistake Application
The Revenue filed a Rectification of Mistake application against the Tribunal Final Order, arguing that the order did not consider the allegation of suppression of facts with intent to evade duty and penalty under Section 11AC of the Central Excise Act. The Revenue contended that the assessee did not register with the Revenue Department, concealed the manufacturing of motor vehicles, and cleared them without paying Central Excise duty. The Revenue relied on a Supreme Court decision to support their claim of suppression.

Issue 2: Allegation of Suppression of Facts
The assessee, represented by their counsel, claimed that they were only involved in job work of fabricating/mounting bodies on chassis supplied by the manufacturer before a specific date. They received chassis under Challans and Invoices-cum-Challans, believing the duty liability rested with the chassis manufacturer. The assessee argued that they paid the duty as demanded by the Revenue. However, it was admitted that the facts mentioned in the show cause notice were not disclosed to the Revenue, and the duty payment was not disputed. Referring to the Supreme Court decision cited by the Revenue, the Tribunal found an allegation of suppression of facts in the show cause notice. Consequently, the Rectification of Mistake application was allowed, and the Tribunal upheld the imposition of penalty under Section 11AC of the Central Excise Act. The penalty amount was reduced to Rs. 10,000 considering the facts and circumstances of the case.

In conclusion, the Appellate Tribunal CESTAT, New Delhi, in this judgment addressed the Rectification of Mistake application filed by the Revenue against the Tribunal Final Order. The Tribunal analyzed the allegation of suppression of facts with intent to evade duty and the imposition of penalty under Section 11AC of the Central Excise Act. The decision highlighted the importance of disclosing relevant information to the Revenue Department and upheld the penalty while reducing the amount based on the specific circumstances of the case.