2011 (12) TMI 449 - AT - Central Excise

Duty demand - Held that - show cause notice dated 27-3-1998 by Commissioner of Central Excise Indore-I is only issued to M/s. Godrej Soaps Ltd. for demand of duty and for imposition of penalties. In the show cause notice there is no proposal for demand of duty or imposition of penalty against the person sought to be impleaded. As no show cause notice has been issued for demand of duty or imposition of penalty therefore we find no merit in the contention of the Revenue that the above-mentioned persons to be impleaded in the proceedings which are in respect of show cause notice dated 27-3-1998 in which the demand of duty and imposition of penalties is only from M/s. Godrej Soaps Ltd - Decided against Revenue.

Summary

Issues:
Impleading of respondents in an appeal involving show cause notices dated 23-12-1997 and 27-3-1998.

Analysis:
The Revenue filed an application to implead several parties as respondents in an appeal filed by M/s. Godrej Consumer Products Ltd. The show-cause notice was issued for demanding duty and imposing penalties on various entities and individuals. The matter was adjudicated by the Commissioner of Central Excise, Mumbai-II, and appeals were filed before the Tribunal. The Supreme Court remanded the case back to the adjudicating authority and the Tribunal for further proceedings. The Revenue sought to implead the mentioned parties based on common issues in both show cause notices.

The contention was that the parties sought to be impleaded were necessary for the proceedings initiated by the show cause notice dated 27-3-1998 as they were involved in the show cause notice dated 23-12-1997. The Counsel argued that the Supreme Court remanded the matter for deciding penalties, including those on the parties sought to be impleaded. However, the respondents argued that the present appeal pertained only to the show cause notice dated 27-3-1998 issued to M/s. Godrej Soaps Ltd., and therefore, there was no merit in impleading the additional parties.

The Tribunal noted that the adjudication order covered show cause notices from both 1997 and 1998. The Supreme Court remanded the matter to the adjudicating authority and the Tribunal for further consideration. The specific show cause notice from 1998 was only against M/s. Godrej Soaps Ltd. for duty demands and penalties, with no mention of the parties sought to be impleaded. As no notice was issued against them, the Tribunal found no merit in impleading the additional parties in the proceedings related to the 1998 show cause notice.

The application for impleading the respondents was rejected based on the lack of merit in involving them in the proceedings related to the specific show cause notice dated 27-3-1998. The Tribunal directed the case to be reheard within a specified timeframe as per the Supreme Court's instructions. The appeal was scheduled for a hearing on a specified date in compliance with the Supreme Court's directive.