2004 (3) TMI 74 - HC - Central Excise

Summary

Issues:
Delay in filing the petition under Section 151, Code of Civil Procedure.
Seeking direction under Section 35H(1) of the Central Excise Act, 1944 regarding penalty imposition.
Appeal against the cancellation of penalty under Rule 173Q of the Central Excise Rules, 1944.

Delay in Filing Petition:
An application was filed under Section 151, Code of Civil Procedure, for condonation of a 395-day delay in filing the petition. The court allowed the condonation of delay in refiling the petition.

Penalty Imposition under Central Excise Act:
The Revenue filed a petition under Section 35H(1) of the Central Excise Act, 1944, seeking a direction to refer questions of law arising from an order imposing a penalty of Rs. 3 lacs under Rule 173Q of the Central Excise Rules, 1944. The questions raised included the legality of the Tribunal's order, the mandatory imposition of penalties on habitual offenders, and the impact of taking the case to the BIFR on penalty imposition. The Tribunal affirmed the cancellation of the penalty by the Commissioner, considering the financial difficulties faced by the appellant and the ongoing proceedings before the BIFR. The court dismissed the petition, finding no substantial question of law arising from the Tribunal's order.

Appeal Against Penalty Cancellation:
The Revenue's appeal against the cancellation of the penalty by the Commissioner was dismissed by the Tribunal. The Tribunal noted that the appellant had approached the BIFR in 1997, and the delay in depositing duty occurred during the pendency of the proceedings before the BIFR. The Tribunal upheld the Commissioner's findings based on the factual background and the ongoing proceedings before the BIFR. The court, after considering the arguments presented, found no merit in the petition and dismissed it in limine.