2009 (8) TMI 920 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT NEW DELHI, consisting of Shri D.N. Panda and Rakesh Kumar, JJ., heard an appeal where the appellant sought to contest a disputed duty demand of Rs. 13,45,141/-. The learned Commissioner's order reduced the demand to Rs. 3,10,810/- after the Assistant Commissioner verified documents to decide the Modvat credit admissible. The appellant's appeal before the Tribunal became infructuous due to the reduction in duty demand. However, the quantum of penalty needed re-determination. The appellant argued that there was no intention to evade duty, as one of the partners owned the brand name involved. The Revenue contended that the appellant did not provide information on the brand name's use. The Tribunal found that the duty demand issue was resolved, and the penalty aspect needed further examination. Referring to a Supreme Court decision, the Tribunal remanded the penalty issue to the Adjudicating Authority for a fresh hearing to determine if a penalty was warranted and the quantum. The Tribunal emphasized the need for a fair hearing and proper findings on the penalty issue. The matter was remanded for a limited purpose of addressing the penalty aspect only. The Tribunal's order was dictated and pronounced in open court.