2008 (8) TMI 376 - HC - Central Excise

Summary

Issues:
1. Appeal against order passed by the Customs, Excise and Service Tax Appellate Tribunal.
2. Imposition of penalty on a company and its Managing Director.
3. Justification of separate penalty on the proprietor of a firm.
4. Violation of principles of natural justice due to lack of show cause notice.
5. Jurisdiction of the Adjudicating Authority in deciding the matter post remand.

Analysis:
1. The appeal under Section 35G of the Central Excise Act was filed against the order passed by the Customs, Excise and Service Tax Appellate Tribunal. The demand for penalty on the company and its Managing Director was set aside in the initial order.

2. The Tribunal found that imposing a separate penalty on the proprietor of a firm in addition to the penalty on the firm was not justified. However, it noted that the duty demanded required re-evaluation. The matter was remanded back to the Commissioner for reconsideration based on the actual duty evasion worked out.

3. The appellant argued that the principles of natural justice were violated as no show cause notice was served regarding the imposition of penalty on him for managing the company's affairs. The Court acknowledged the lack of notice but noted that the appellant had participated in the proceedings voluntarily. The findings were considered preliminary, allowing the Adjudicating Authority to consider all pleas raised.

4. The appellant further contended that the Adjudicating Authority exercised a different jurisdiction post-remand, deviating from the adjudication process under Section 33 of the Act. The Court disagreed, stating that the Authority was required to decide questions related to duty evasion and comply with statutory procedures.

5. Ultimately, the Court disposed of the appeal based on the above considerations, emphasizing the Authority's role in determining duty evasion and penalties in accordance with the law.