2008 (1) TMI 36 - AT - Central Excise

The amount of penalty reduced on the ground of only offence is that the amount of duty not debited by the assessee from PLA but as per revenue one more contention is that one of invoice issued is fake - Matter remanded for fresh consideration

Summary

Issues involved:
Appeal against order passed by Commissioner (Appeals) regarding penalty reduction and setting aside, authenticity of invoices, duty debiting in PLA, fake invoice allegations, remand for fresh consideration by Commissioner (Appeals).

Analysis:
1. The appellate authority reduced the penalty imposed by the Commissioner (Appeals) based on the observation that the goods were cleared under proper invoices but duty was not debited in PLA. The penalty was reduced to Rs.2,000 under Rule 226 of Central Excise Rules, while penalties under Rule 173Q and 209A were set aside. The respondent filed a cross objection against this decision.

2. The key issue arises from the show cause notice and the order-in-original, which alleged that one of the invoices (No.128) was fake. The authorized signatory admitted to this fact, along with the goods not being accounted for in Central Excise Record. However, the Commissioner (Appeals) did not consider the authenticity of invoice No.128 and proceeded as if all three invoices were regular. The appellate member found discrepancies in this approach, leading to the decision to set aside the order and remand the matter for fresh consideration. The respondent is granted the opportunity to present their defense regarding the allegations and findings made in the original order.

3. Both appeals were allowed by way of remand, and the cross objection was disposed of accordingly. The decision highlights the importance of addressing all aspects of the case, including the authenticity of invoices and proper debiting of duty, to ensure a fair and thorough consideration by the appellate authority.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT AHMEDABAD underscores the significance of proper documentation and compliance in excise matters, emphasizing the need for a comprehensive review of all relevant facts and allegations before reaching a final decision.