2021 (11) TMI 1153 - SCH - Central Excise

Wilful Disobedience - Area based exemption - exemption in respect of NCCD, EC and SHEC - N/N. 50 of 2003 dated 10.06.2003 - CENVAT credit - penalty u/s 11AC - HC 2018 (1) TMI 770 - UTTARAKHAND HIGH COURT held that The power to exempt payment of NCCD and the cesses in terms of the Act and the Rules are certainly available in relation to NCCD and the cesses, but they remain levies under the concerned Finance Acts. Since they are part of the basket of levies embraced under Rule 3(1) making up the aggregate of the CENVAT credit, subject to any restriction or limitation, which may be found elsewhere, there can be no doubt that the assessee can make use of the basic excise duty under the Act for payment of the NCCD or the cesses on the final product. And entitlement of credit was denied - HELD THAT - The impugned show cause notice has still not been withdrawn despite the caution extended on 08.10.2021 - Let contempt notice issue to the officers concerned for willful disobedience of the orders of this Court. MA 1675/2021 in C.A. No. 1600-1605/2018 This application post dismissal of Review Petition, a gross abuse of process of law. Not only that the review Petition was dismissed on 25.08.2020 both on delay and merits. Despite that in ground M in the application a false averment has been made that the review petition was only dismissed on limitation. That is a ground itself apart from anything else for dismissal of this application - Application dismissed.

Summary

Issues:
1. Contempt of court for willful disobedience of orders.
2. Abuse of process of law in filing post-dismissal application.

Contempt of Court Issue:
The Supreme Court noted that despite caution given on a previous date, the impugned show cause notice had not been withdrawn. Consequently, the Court decided to issue a contempt notice to the officers concerned for their willful disobedience of the Court's orders. The Court directed the officers to file a reply within two weeks and ordered them to remain present in Court on the next hearing date scheduled for 26.11.2021.

Abuse of Process of Law Issue:
In another matter related to an application filed post dismissal of a Review Petition, the Court found it to be a gross abuse of the legal process. The Review Petition had been dismissed earlier on grounds of delay and merits. Despite this, the application contained a false averment that the Review Petition was only dismissed on limitation, which the Court deemed as a ground for dismissing the application. Consequently, the Court dismissed the applications and disposed of the related Miscellaneous Application.