2007 (6) TMI 441 - AT - Central Excise

Summary

Issues involved: Permission to appeal on duty demand and penalty, COD clearance, imposition of penalty.

Permission to appeal on duty demand and penalty: The appellants, a Public Sector Unit, sought permission from the Committee on Disputes (COD) to pursue an appeal regarding duty demand and penalty. The COD clearance allowed them to pursue only the penalty aspect of the dispute before CESTAT, stating that the issue in dispute was 'revenue neutral' in the 'Cenvat Regime'. Consequently, the appeal filed by the appellants concerning duty demand was dismissed as non-maintainable.

COD clearance and penalty imposition: The COD clearance indicated that the appellants were permitted to pursue their appeal solely in relation to the penalty. Given that the issue in dispute was deemed 'revenue neutral' and the Department was aware of the appellants' practice of sending goods to job workers for minor working before dispatching to customers, the Tribunal found no justification for penalizing the appellants. Consequently, the penalty imposed under the impugned order was set aside, and the appeal was allowed solely in respect of the penalty proceeding. Subsequent proceedings were also disposed of accordingly.