2007 (1) TMI 75 - HC - Central Excise

Appeal to H.C. - Appellant file an appeal in regard of quantification of excise duty and amount of penalty - Held that no appeal entertain only for verifying arithmetic calculation and penalty amount imposed by tribunal sustained

Summary

Issues:
Quantification of Excise Duty and Penalty in an appeal challenging the Tribunal's order.

Quantification of Excise Duty:
The High Court analyzed the issue of quantification of Excise Duty in the appeal. The Court noted that the rates prescribed by the Tariff Act should be applied vis-a-vis the quantity/value of the goods on removal from the factory. The appellant disputed the calculation method used by the Tribunal, arguing that only the weight of estimated clandestinely received cement bags should be considered for duty calculation. The Tribunal accepted this contention, leading to a reduction in the duty demand from Rs. 2,46,682 to Rs. 1,78,180. The Court emphasized that if there are concerns about the arithmetical calculation, the appellant should seek rectification from the relevant authority. However, the Court clarified that no appeal can be entertained solely for verifying arithmetical calculations.

Penalty Quantification:
Regarding the penalty, the Court observed that Section 11AC of the Central Excise Act, 1944 makes a manufacturer liable to a penalty equal to the quantified duty. In this case, the penalty was reduced to Rs. 1,50,000 while the duty demand stood at Rs. 1,78,180. As the penalty amount upheld by the Tribunal was less than the duty amount, the Court concluded that no legal question arose for consideration in the appeal. Consequently, the Court dismissed the appeal in limine, indicating that no other issues were raised apart from the quantification of Excise Duty and Penalty in the Tribunal's order.