2004 (2) TMI 244 - AT - Central Excise

Summary

Issues: Imposition of penalty for failure to file form RT-13 returns under Rule 173Q and Rule 210 of the Central Excise Rules, 1944.

The judgment pertains to appeals concerning the imposition of a penalty on the appellants for their failure to file form RT-13 returns for the months of January, 2001 to March, 2001, under Rule 173Q(1) read with Rule 210 of the Central Excise Rules, 1944. The appellants, operating under the 100% EOU scheme, argued that since their unit had nil production and no clearances during the relevant period, the returns would be 'nil.' Despite filing 'nil' RT-13 returns subsequently, a penalty of Rs. 5,000/- was imposed by the adjudicating authority, which was confirmed by the Commissioner (Appeals), leading to the appeals to the Tribunal.

The first challenge raised by the appellants was the applicability of Rule 173Q to them, citing a previous Tribunal decision in the case of Deccan Granites v. Commissioner of Central Excise, Hyderabad. The Tribunal held that the penalty imposed under Rule 173Q was not justified, also noting that a penalty had been imposed under Rule 210, which permits a penalty of Rs. 1,000/- only.

Upon considering the facts and circumstances of the case, the Member (T) observed that the failure to file the RT-13 returns did not significantly impact the Government revenue since the returns for the period were 'Nil' due to the absence of production and clearances. Consequently, it was deemed that no penalty was warranted for the appellant's failure to file the RT-13 returns in this particular case. As a result, the appeals were allowed in Toto, and the orders of the lower authorities imposing the penalty were set aside.