2011 (5) TMI 1041 - HC - Central Excise

Summary

Issues involved: Appeal u/s 35G of the Central Excise Act, 1944 against the Final Order No. 609-630/2009-Ex (DB) dated 4-9-2009 in Excise Appeal No. 1407 of 2009-Ex (BR) on substantial questions of law.

Issue (i): Whether penalty under Rule 25 is legal when provisions of Rule 173Q(bbb) of the erstwhile Central Excise Rules, 1944, rescinded in 2001, are not incorporated in Rule 25 of the Central Excise Rules 2001/2002.

Issue (ii): Legality of the order confirming penalty under Rule 25 when there was no provision similar to Rule 173Q(bbb) in the Central Excise Rules, 2002, despite admission of this fact.

Issue (iii): Legality of imposing penalty under Rule 25 in absence of goods, considering penalty depends on the value of goods.

Issue (iv): Imposition of penalty under Rule 25 in absence of proposal for confiscation of goods.

Issue (v): Legality of the order without following precedent decision on the same issue, not adhering to judicial propriety of following a decision by a Larger Bench of the Tribunal.

Issue (vi): Determining if appellants dealt with goods u/s Rule 25 despite the department's claim of no receipt or supply of goods.

Issue (vii): Justifiability of upholding penalty equal to Cenvat credit passed on to buyers, considering appellant received only a 3% commission and penalty should be commensurate with the offense.

The appeal was disposed of in similar terms as a previous case, remanding the matter to the Tribunal for further proceedings on July 4, 2011. Respondents were granted the liberty to move the Court if aggrieved by the order.