2012 (6) TMI 724 - AT - Central Excise

Demand of duty on account of process of dyeing of cotton fabrics - Penalty - Held that - The appellant may be given an opportunity of concessional penalty subject to payment of duty and interest within 30 days of service of intimation of duty and interest payable by the appellant - Matter remanded back - Decided partly in favour of assessee.

Summary

Issues: Interpretation of order forms, liability for duty, concession in penalty

In this case, the main issue revolves around the interpretation of 14 order forms that allegedly show no dyeing of fabrics, leading to a dispute regarding the duty liability. The appellant argues that the authorities misinterpreted the order forms, as some goods were exempted from dyeing processes. On the contrary, the Revenue contends that the appellant undertook dyeing processes without proper registration, making them liable for duty. The adjudicating authority rejected the appellant's plea based on the evidence provided and upheld the duty demand. The appellate authority also found in favor of the Revenue, concluding that the goods were indeed dyed fabrics based on the evidence presented. Consequently, the duty demand was confirmed.

Regarding the concession in penalty, the appellant requested a reduction in penalty citing precedents. The Tribunal granted an opportunity for a concessional penalty, subject to the appellant paying the duty and interest within 30 days. The matter was remanded back to the adjudicating authority to verify the payments made and determine any outstanding amounts, allowing the appellant to pay a penalty of 25% of the duty along with the remaining balance of duty and interest within one month of the intimation served.

In conclusion, the appeal was partly allowed by remanding the case for verification of duty and interest payments, confirming the duty and interest liability while providing an option for a reduced penalty payment.