2018 (1) TMI 1127 - AT - Central Excise

Quantification of tax liability - redemption fine - penalty - various metallic scrap cleared by the appellant - non-maintenance of proper records - Held that - there is no prescribed format of maintaining accounts for excise purpose. As long as the required particulars to fulfill the provision of Central Excise Act/Rules made thereunder are available the same should satisfy as proper accounting. In the present case, the appellants claimed that the scrap seized by the officers on the ground of non-accountal were in fact accounted in the raw material register. Similarly, the duty calculation requires re-verification - appeal allowed by way of remand.

Summary

Issues:
Quantification of tax liability, imposition of fine and penalty

Analysis:
The case involved two appeals against the order of the Commissioner of Central Excise (Appeals – I), New Delhi, regarding the demand and recovery of Central Excise duty on metallic scrap cleared by the appellant. The Original Authority held the appellant liable to pay Central Excise duty, interest, and imposed penalties and confiscation of goods. On appeal, the order was affirmed with a reduction in the fine amount. The appellant contended that they had already paid a substantial amount towards duty and raised concerns about errors in duty calculation, non-consideration of seized scrap quantity, and incorrect interest calculation based on being a Small Scale Industry (SSI) unit.

Upon hearing both parties and examining the appeal record, the Tribunal noted that the main issues contested were the quantification of tax liability and the imposition of fines and penalties. The appellant's arguments regarding the scrap being accounted for in their records, errors in duty calculation, entitlement to cum duty benefit, and interest calculation based on SSI unit status were found to merit consideration. The Tribunal observed that there was no prescribed format for maintaining excise accounts as long as necessary details to comply with the Central Excise Act/Rules were available. As crucial submissions by the appellant were not adequately addressed by the lower authorities, the Tribunal decided to set aside the order and remand the matter to the Original Authority for a fresh decision on all issues. The appellant was granted liberty to raise additional issues and submit further evidence. Consequently, the appeals were allowed by way of remand.

In conclusion, the Tribunal's judgment focused on addressing the concerns raised by the appellant regarding the quantification of tax liability, imposition of fines and penalties, and errors in the duty calculation process. The decision to remand the matter for a fresh decision aimed to ensure a thorough examination of all issues and the opportunity for the appellant to present additional evidence.