2012 (5) TMI 624 - HC - Central Excise

Summary

Issues involved: Challenge to the order of Customs, Excise and Service Tax Appellate Tribunal regarding penalty for shortage of Tread Rubber under Sections 11AC and 11AB of the Central Excise Act.

Summary:
1. The appellant contested the legality of the order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, dated 18-7-2008, related to a penalty imposed for a shortage of Tread Rubber.
2. Central Excise officials found a shortage of 2247.78 kgs of Tread Rubber at the respondent's premises on 10-11-1995. A penalty of &8377; 81,781 was demanded by the Joint Commissioner of Central Excise under Sections 11AC and 11AB of the Act. The assessee's appeal to the Commissioner (Appeals) and subsequently to the CESTAT was successful, leading to the current appeal.
3. The appeal raised two substantial questions of law regarding the interpretation of Section 11A of the Central Excise Act and the applicability of a previous judgment. The Tribunal's decision was challenged based on errors in applying legal precedents.
4. The appellant's counsel argued that the Tribunal erred in overturning the concurrent findings of facts without proper consideration of the case's specifics. The Tribunal's decision was deemed to lack proper analysis and was set aside for reconsideration.
5. The appeal was allowed without answering the questions of law, and the matter was remanded to the CESTAT for fresh consideration in accordance with the law.