2003 (9) TMI 103 - HC - Central Excise

Summary

Issues:
Central Excise Cases under Section 35H(1) of the Central Excise Act, 1944 - Mandamus for reference of question of law to High Court - Manufacture of excisable commodity - Imposition of penalty.

Analysis:

1. Manufacture of Excisable Commodity:
The case involved the question of whether the process of cold rolling of steel strips from hot rolled strips amounts to 'manufacture' of a new excisable commodity. The Tribunal found that the department needed to provide evidence to establish this. Since there was a lack of evidence on record, the Tribunal accepted the appeal by the assessee and remanded the case for the adjudicating authority to record a finding on this issue. The Tribunal also noted that the circles produced from the cold rolled strips were used for manufacturing utensils within the factory and for sale in the market. This aspect was crucial in determining whether the process constituted 'manufacture' under the Central Excise Act.

2. Imposition of Penalty:
The Tribunal further considered the imposition of a penalty and found that no penalty was warranted in this case as there was no suppression of facts on the part of the assessee. The absence of any deliberate concealment or misrepresentation of facts by the assessee led the Tribunal to conclude that penalizing the assessee was not justified. This decision was significant in determining the consequences for the assessee in relation to the central excise proceedings.

3. Judicial Review and Dismissal of Cases:
Upon reviewing the Tribunal's order, the High Court found that no question of law arose from the order dated 15-2-2002. The High Court observed that the case had been remanded for a fresh finding on the issue identified by the Tribunal. Consequently, the High Court held that there was no merit in the Central Excise Cases and dismissed them. This decision highlighted the court's role in judicial review and its determination of the legal implications of the Tribunal's actions in the context of the Central Excise Act.

In conclusion, the judgment addressed the issues of manufacturing processes, imposition of penalties, and the judicial review of decisions made by the Tribunal under the Central Excise Act. It underscored the importance of evidence in determining the classification of activities as 'manufacture' and the considerations involved in imposing penalties on parties involved in excise proceedings.