2019 (8) TMI 1514 - AT - Central Excise

Maintainability of appeal - non-compliance with the pre-deposit in respect of penalty amount only - HELD THAT - The appellants have paid the entire demand along with applicable interest before issuance of the show cause notice and due intimation was given to the ranger officers and accordingly there was no occasion for issuance of the show cause notice - Also, there are no ingredient of suppression, willful misstatement etc. with intent to evade Central Excise duty. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Non-compliance of pre-deposit.
2. Contesting the imposition of penalty.
3. Payment of differential Central Excise duty with interest.
4. Intimation to the department for removal of goods to related persons.
5. Justification of the impugned order.

Analysis:

1. The matter was listed for non-compliance of pre-deposit. The appellant had already deposited an amount exceeding the confirmed demand, which included payment towards CENVAT and interest. The appellant contested the imposition of a penalty and argued that the excess amount deposited should cover the mandatory pre-deposit requirement for the penalty. The appeal was taken up for disposal with the consent of both parties.

2. The appellant had paid the differential amount of Central Excise duty with interest before the issuance of the show cause notice. The payment was made after due intimation to the concerned range Superintendent. The adjudicating authority imposed a penalty citing non-payment after self-auditing, which the appellant argued was unjustified given the circumstances of self-assessment.

3. The appellant contended that there was no requirement for a separate intimation to the department for the removal of goods to related persons for captive consumption. All transactions were duly recorded in the appellant's accounts, including balance sheets, with no deliberate suppression of facts. The goods were cleared to related persons for further manufacturing of dutiable goods.

4. The authorized representative for the Revenue supported the impugned order, while the Tribunal analyzed the records and found that the appellants had paid the entire demand along with applicable interest before the show cause notice was issued. There was no evidence of suppression or willful misstatement to evade Central Excise duty. Consequently, the impugned order was set aside, and the appeal by the appellant was allowed.

This judgment highlights the importance of compliance with pre-deposit requirements, the timing of duty payments, and the necessity of proper intimation in Central Excise matters. It also emphasizes the significance of maintaining accurate records and transparency in transactions to avoid penalties and disputes.