2023 (12) TMI 1209 - HC - Central Excise

Levy of penalty - wrongly passing on the Modvat Credit - HELD THAT - The Tribunal found no reason to interfere with the Order-in-Original bearing in mind the fact that while the appellant was purchasing scrap from Maruti Udyog at the rate of Rs. 9000/- 10000/- MT, it was selling the same at the rate of Rs. 7000/- 9000/- MT. Although before the original authority, the appellant appears to have set up a case of having graded the scrap according to quality and value, the said Authority had on a due appreciation of the evidence led, found no basis to accept that explanation and consequently proceeded to levy the penalties. The issues that are raised principally relate to an appreciation of evidence and since no question of law appears to arise, the appeal shall stand dismissed.

Summary

Issues Involved:
1. Upholding of the common adjudication order by the Customs Excise & Gold (Control) Appellate Tribunal.
2. Dismissal of the appeals preferred by the appellant.

For the first issue, the Tribunal upheld the common adjudication order dated 28 February 2001 and dismissed the appeals of the appellant. The Tribunal found that the scrap purchased from Maruti Udyog at a higher rate was being sold at a lower rate by the appellant, without a satisfactory explanation for the price difference. The Tribunal also noted that no evidence of collusion was found against Haryana Steel & Alloys Ltd., who received the scrap under specified duty paying documents. Penalties were imposed on both appellants for wrongly passing on the Modvat Credit. The Tribunal concluded that the penalties were justified in this case.

Regarding the second issue, after hearing the counsels for both parties, the High Court found that the main issues raised related to the evaluation of evidence. Since no legal questions were identified, the appeal was dismissed based on the Tribunal's decision being upheld, as there was no legal basis for interference.