2008 (8) TMI 42 - SC - Central Excise

What should be the rate of duty on deboning by 100% EOU - issue is concluded in favour of the assessee by a SC judgment in the case of M/s. Siv Industries Ltd. - Revenue has also accepted the judgment in the said case pursuant whereto it has also issued clarifications vide Circular No. 618/9/2002 hence order of the Tribunal setting aside the amounts of penalty is confirmed - criminal proceedings, arising out of the order of the Commissioner, initiated against the assessee stand quashed

Summary

Issues: Allegation of clearing goods without following procedures and payment of central excise duty, confirmation of duty amount by Commissioner, setting aside of Commissioner's order by Tribunal, appeal by revenue, judgment in favor of assessee based on precedent, concession by assessee on duty payment, confirmation of penalty setting aside by Tribunal, criminal complaint filed against duty determination and penalties, petition to quash criminal proceedings, dismissal of petition by High Court, appeal against High Court's decision, quashing of criminal proceedings due to confirmation of penalty setting aside.

Analysis:

1. The Supreme Court addressed the issue of a show cause notice issued to the assessee for allegedly clearing goods without following procedures and without paying central excise duty. The Commissioner confirmed a reduced duty amount and imposed penalties. The Tribunal later set aside the Commissioner's order, leading to an appeal by the revenue.

2. The Court noted that the point in issue was decided in favor of the assessee in a previous judgment. The revenue had also accepted this judgment and issued clarifications and amended the law accordingly. The assessee had already deposited the confirmed duty amount and waived any claim to it.

3. The Court, considering the concession made by the assessee, decided not to refund the deposited duty amount but confirmed the Tribunal's decision to set aside the penalties imposed by the Commissioner. The appeals were allowed with no costs.

4. In a separate criminal appeal, the Court addressed a complaint filed against the duty determination and penalties. The assessee sought to quash the criminal proceedings, which was dismissed by the High Court. The Court, based on the confirmation of setting aside penalties in the previous appeal, quashed the criminal proceedings initiated against the assessee.

5. The Court's decision in both the appeals was in line with the confirmation of penalty setting aside by the Tribunal, leading to the quashing of the criminal proceedings. The appeals were allowed accordingly, providing a comprehensive resolution to the legal issues involved in the case.