2009 (2) TMI 583 - AT - Central Excise

Summary

Issues: Recovery of establishment charges under Section 142 of the Customs Act 1962 and penalty levy of Rs. 10,000.

Recovery of Establishment Charges:
The appellant argued that the recovery of Rs. 78,669 under Section 142 of the Customs Act 1962 was impermissible by law as it constituted mere cost of establishment charges of the Central Excise authority. The Ld. Commissioner (Appeals) upheld the recovery relying on a Board's Circular. The Ld. counsel contended that the recovery charge was not permissible under the law, and the appellate authority failed to discuss the legal position on the matter. The Tribunal found that there was no clear finding on the sanction of law for such charges, and thus, the appellants should not suffer during the appeal process. Consequently, the pre-deposit was dispensed with until the appeal's disposal, and there would be no recovery of the demand raised by the impugned order.

Penalty Imposition:
The penalty of Rs. 10,000 levied on the appellant was also contested. The Ld. DR submitted that the order passed by the lower authority was proper. However, the Tribunal did not delve into the specifics of the penalty imposition in the provided excerpt. The focus remained on the recovery of establishment charges under Section 142 of the Customs Act. The judgment did not provide a detailed analysis of the penalty issue, but it was mentioned in passing as part of the overall appeal.

Resolution and Decision:
Given the gravity and peculiarity of the situation, the Tribunal decided to refer the matter to a Division Bench to resolve the dispute conclusively. The Registry was directed to take appropriate action in this regard. The judgment concluded with the decision to refer the issue to a Division Bench for a final decision, highlighting the importance and complexity of the matter at hand.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT, New Delhi, highlights the key issues of recovery of establishment charges under Section 142 of the Customs Act 1962 and the penalty levy of Rs. 10,000. The judgment focused on the legality of the recovery charges and the lack of clear findings on the sanction of law for such charges, leading to the dispensation of pre-deposit until the appeal's disposal. The penalty imposition issue was briefly mentioned, with the decision to refer the matter to a Division Bench for a conclusive resolution.