2020 (3) TMI 311 - AT - Central Excise

Maintainability of appeal - appeal was dismissed for the reason that the Appellant had not made the pre-deposit - Appellant sought for extension of the time for making the pre-deposit from the High Court - Demand of duty alongwith penalties - HELD THAT - On the same investigation and on the same set of facts, a common show cause notice was issued to M/s Uma Synthetics Pvt Ltd, M/s Priya Textiles Ltd and present Appellant, which was decided by a common Order-in-Original - The Appeals of co-noticees namely M/s Uma Synthetics Pvt Ltd and M/s Priya Textiles Ltd have been already allowed. Nothing new has been got on record to challenge the findings recorded by the Tribunal in the order in respect of appreciation of evidences or the interpretation of law. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Confirmation of Central Excise duty against two companies
2. Imposition of personal penalties on the companies
3. Liability to pay interest on delayed payment of duty
4. Imposition of personal penalties on individuals associated with the companies
5. Dropping of penal proceedings against an individual
6. Appeal against the Order-in-Original

Analysis:

Confirmation of Central Excise Duty:
The Commissioner confirmed Central Excise duty against two companies, M/s Uma Synthetics Pvt Ltd and M/s Manika Processors, for specific periods under Rule 9(2) read with Section 11A of the Central Excise Act, 1944.

Imposition of Personal Penalties:
The Commissioner imposed personal penalties on the companies under Rule 9(2), 173Q, and 226 of Central Excise Rules, 1944 read with Section 11AC of the Central Excise Act, 1944. Additionally, interest on delayed payment of duty was also levied on the companies.

Personal Penalties on Individuals:
Personal penalties were imposed on individuals associated with the companies, including the Managing Director of M/s Uma Synthetics & Priya Textiles and the Karta of HUF concern of Manika, under Rule 209A of the Central Excise Rules, 1944.

Dropping of Penal Proceedings:
Penal proceedings against an individual, Mrs. Meera Khemka, were dropped as per the show cause notice under Rule 209A of the Central Excise Rules, 1944.

Appeal against the Order-in-Original:
An appeal was filed against the Order-in-Original by the present Appellant and co-noticees. While the appeals of co-noticees were allowed, the present Appellant's appeal was dismissed initially due to non-compliance with the pre-deposit requirement. However, after seeking an extension and making the deposit as directed, the appeal was restored and subsequently allowed by the Tribunal based on existing judicial precedence.

The Tribunal found that the issue in the present Appeal was similar to that of the co-noticees, where the Tribunal had set aside the demand of duty and penalties. The Tribunal noted that no new evidence or challenge was presented to dispute the previous findings, leading to the decision to allow the present Appeal based on established judicial precedent.

In conclusion, the Appeal was allowed with consequential relief, if any, as pronounced in court on 06.03.2020.