2009 (8) TMI 1167 - AT - Central Excise

Summary

Issues involved: Confirmation of demand of Central Excise duty, imposition of penalties, violation of principles of natural justice, non-compliance with orders.

Confirmation of demand of Central Excise duty: ICCONOL Petroleums Private Limited filed an appeal against the confirmation of demand of Rs. 49,46,839.00 under Section 11A along with interest and penalty. The company dispatched finished goods to buyers without payment of duty, leading to a show cause notice being issued for recovery of duty, education cess, interest, and penalty under Section 11AC of Central Excise Act, 1944. The Order-in-Original confirmed the demand and penalties, which was challenged before the Commissioner of Central Excise (Appeals).

Imposition of penalties: Appeals were also filed by other entities against penalties imposed on them for their involvement in the alleged clandestine removal of finished products. The Commissioner of Central Excise (Appeals) directed ICCONOL Petroleums Private Limited to deposit 50% of the duty demanded and penalty imposed. However, the appellants failed to comply with the order, leading to dismissal of their appeals.

Violation of principles of natural justice: The advocate for the appellants argued that the lower authorities violated natural justice by not providing copies of documents relied upon in the show cause notice and adjudication orders. Requests for documents and cross-examination of relevant individuals were not adequately addressed by the authorities, raising concerns about procedural fairness.

Non-compliance with orders: Despite multiple directives to deposit the required amounts, the appellants failed to comply, resulting in the dismissal of their appeals. The Tribunal directed ICCONOL Petroleums Private Limited to deposit a specified amount towards duty and furnish a bank guarantee within a set timeframe. Failure to adhere to these directions would lead to the dismissal of all appeals.

Conclusion: The Tribunal ordered ICCONOL Petroleums Private Limited to make specified payments and provide a bank guarantee within a set period. Upon compliance, the impugned order would be set aside, and the appeals remanded back to the Adjudicating Authority for fresh orders, ensuring procedural fairness and compliance with natural justice principles. The appeals were remanded for de novo decision, and stay petitions were disposed of accordingly.