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2018 (9) TMI 819 - AT - Central ExciseImposition of equivalent penalty u/s 11AC of CEA, 1944 - the entire Order in Original was set aside - Held that - Since the entire Order-in-Original was contested by the assessee and the demand and penalties are set aside, the appeal filed by the Revenue for imposing penalty does not survive. Revenue needs to be rejected - appeal dismissed - decided against Revenue.
Issues: Appeal by Revenue against Order-in-Original, modification of penalty under Section 11AC, correctness of interest part, setting aside of demand of duty, re-determination of duty quantum, setting aside of penalty under Rule 25.
Analysis: The judgment by the Appellate Tribunal CESTAT Hyderabad involved an appeal filed by the Revenue against Order-in-Original No. 17/2008-CE-HYD-Commr. dated 26.08.2008. The Revenue sought modification of the order to impose an equivalent penalty under Section 11AC of the Central Excise Act, 1944, and to correct the language regarding the interest part. The learned Commissioner for the Revenue highlighted that the Order-in-Original was passed in denovo proceedings on the Tribunal's direction, emphasizing the need for correcting the reasoning and imposing penalties. On the other hand, the Assessee's Advocate pointed out that a previous appeal by the appellant/assessee had been decided by the Tribunal in Final Order No. A/30223/2018 dated 31.01.2018, where the demand of duty for the extended period was set aside, demands within the limitation period were confirmed, and the matter was remanded to re-determine the duty quantum, while also setting aside the penalty imposed under Rule 25. Upon reviewing the Final Order dated 31.01.2018, the Tribunal found that the entire issue was addressed in para 8, accepting the assessee's contention that there was no case on merits. The demands confirmed by invoking the extended period were set aside due to earlier notices being issued on the same issue. As the Order-in-Original was contested entirely by the assessee, with demands and penalties being set aside, the appeal by the Revenue for imposing penalty was deemed to lack merit and was rejected. The Tribunal concluded that since the appellants/assessees' appeal had already been disposed of in their favor against the same Order-in-Original, the Revenue's appeal had no grounds for success, leading to its rejection. The order was pronounced and dictated in open court, finalizing the decision on the matter.
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