2007 (4) TMI 497 - AT - Central Excise

Summary

Issues:
1. Appeal against dropping part of the demand of duty raised in the show-cause notice.
2. Dismissal of appeal based on settlement under the Kar Vivad Samadhan Scheme, 1998.
3. Preliminary objection raised by the respondent based on a ruling of the Delhi High Court regarding the proviso to Section 92 of the Finance (No. 2) Act, 1998.

Analysis:
1. The judgment deals with an appeal filed by the Revenue against the dropping of a portion of the duty demand raised in a show-cause notice by the Commissioner. The notice initially demanded over Rs. 43.00 lakhs from the respondents, but the Commissioner confirmed a demand of only Rs. 12,73,196/- against the assessee. The remaining demand was vacated, leading to the Revenue's appeal. The Tribunal considered both sides' submissions and noted that the appeal filed by the respondents against the Commissioner's order had been dismissed earlier by the Bench. This dismissal was due to the dispute being settled under the Kar Vivad Samadhan Scheme, 1998, through Final Order Nos. 492-494/2005. Therefore, the Tribunal dismissed the Revenue's appeal in this regard.

2. The judgment further addresses a preliminary objection raised by the respondent based on a ruling of the Delhi High Court concerning the proviso to Section 92 of the Finance (No. 2) Act, 1998. The objection cited the case of All India Federation of Tax Practitioners Association v. Union of India - 1998 (104) E.L.T. 595 (Del.), where the High Court declared the proviso as unconstitutional under Article 14 of the Constitution of India. The proviso in question prevented appellate authorities from deciding on certain issues if they had been settled under Section 90 by the designated authority. As a result, the Tribunal upheld the objection and dismissed the Revenue's appeal based on the Delhi High Court's ruling.

3. In conclusion, the judgment emphasizes the importance of legal provisions and precedents in determining the outcome of appeals and disputes. It underscores the significance of settlement schemes like the Kar Vivad Samadhan Scheme, 1998, in resolving tax-related issues. Additionally, the judgment highlights the impact of constitutional principles, such as Article 14, on the validity of statutory provisions, ultimately shaping the course of legal proceedings and appeals in taxation matters.