2009 (4) TMI 679 - AT - Central Excise

Summary

Issues involved: Appeal against levy of duty under Section 11A of Central Excise Act, 1944 and penalty under Section 11AC, challenge to waiver of penalty under Section 11-D, consideration of principles of natural justice.

Summary:

1. The appellant contested the levy of duty and penalty under Section 11A and 11AC of the Central Excise Act, 1944, citing violation of natural justice and ignoring of material and pleadings by the lower authority. The appellant argued that the show cause notice was time-barred and no evidence supported the allegation of clandestine removal. The appellant requested the matter to be remanded to the adjudicating authority for proper consideration. The appeal was made on these grounds.

2. The Revenue appealed against the waiver of penalty under Section 11-D imposed by the Commissioner (Appeals) and sought to uphold the original order. The Revenue challenged the order based on specific reasons related to the imposition of penalty under Section 11-D of the Central Excise Act, 1944.

3. After hearing both parties and examining the record, the Tribunal considered the appeals.

4. The Tribunal noted that no penalty is prescribed under Section 11D of the Central Excise Act, 1944, and penalties are leviable under Section 11AC for revenue evasion. The Tribunal referred to relevant legal provisions and case law to support its decision to dismiss the Revenue's appeal.

5. Regarding the demand of duty under Section 11A, the Tribunal found that the appellant was deprived of fair process and justice. To ensure fairness, the matter was remanded to the adjudicating authority for a fresh examination of the charges in the show cause notice, particularly regarding clandestine removal. The Tribunal emphasized the need for a reasoned and lawful decision by the authority.

6. In conclusion, the Tribunal dismissed the Revenue's appeal and allowed the appellant's appeal to the extent of remand for further consideration.

(Order dictated and pronounced in the open Court)