2011 (1) TMI 209 - AT - Central Excise

Delay in filing appeal - appellant was arrested by Sales Tax authority in connection with sales tax case on 4.9.09 and was in jail upto 26.2.10, thereafter, the advocate was contacted, appeal was prepared and filed on 27.4.10 - applicant was in jail when the order was passed and the appeal stand filed within a period of two months of his release from jail Delay condoned

Summary

Issues: Delay in filing appeal, Confirmation of demand jointly and severely, Remand for de-novo adjudication

Delay in filing appeal:
The judgment addresses the delay in filing an appeal by Shri Krishna Kumar Gupta, amounting to 85 days. The appellant cited being in jail from 4.9.09 to 26.2.10 in connection with a sales tax case as the reason for the delay. The appeal was prepared and filed on 27.4.10 after the appellant's release. The Tribunal considered the circumstances, noting the appellant's incarceration during the period the order was passed. Consequently, the Tribunal condoned the delay and allowed the COD application.

Confirmation of demand jointly and severely:
The Commissioner confirmed a demand of Rs.96,35,588 against Shri Krishna Kumar Gupta, the Proprietor of M/s Krishna Synthetics, and held that the amount would be recovered jointly and severely from both Shri Krishna Kumar Gupta and Shri Tejas Arvindbhai Desai. Additionally, penalties of identical amounts equivalent to duty were imposed on both applicants. The Tribunal referred to precedent decisions where it was held that confirming demands jointly and severely on multiple assessees/appellants was not in accordance with the law. Citing the case of M/s Saikrupa Dyeing & Printing Mills Pvt. Ltd, the Tribunal decided to remand the matter to the Commissioner for de-novo adjudication, directing the original adjudicating authority to determine the liability of each individual separately. The Stay Petitions were allowed unconditionally, setting aside the impugned order for reevaluation in line with the Tribunal's observations.

Remand for de-novo adjudication:
Following the precedent decisions and the established practice of deciding liabilities individually, the Tribunal remanded the matter to the Commissioner for de-novo adjudication. By setting aside the impugned order, the Tribunal instructed the Commissioner to reexamine the case in light of the observations made, ensuring a fair and separate determination of the liabilities of Shri Krishna Kumar Gupta and Shri Tejas Arvindbhai Desai. The COD application, Stay Petitions, and appeals were disposed of accordingly.