2007 (2) TMI 474 - AT - Central Excise

Summary

Issues involved: Levy of cess on chassis of trucks manufactured by the appellants, imposition of penalty without specific provision in the enactment levying cess.

Levy of Cess on Chassis:
The Lower Appellate Authority justified the levy of cess on the chassis of trucks manufactured by the appellants. The appellants had already paid the entire demand amount. The Tribunal found no reason to interfere with the Commissioner (Appeals)'s decision in this regard.

Imposition of Penalty:
The appellant argued that there was no specific penalty provision in the enactment levying cess. Citing a Supreme Court case, it was contended that a clear authority of law is required for imposing penalties related to breaches of provisions or additional taxes. Following the Supreme Court's decision, the Tribunal held that in the absence of a specific authority of law, the penalty was not imposable. Consequently, the penalty imposed by the lower authority was set aside.

In conclusion, the Tribunal partly allowed the appeals by setting aside the penalty.