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Issues involved:
1. Reduction of redemption fine and penalty by the Tribunal 2. Review order by the Board directing appeal filing by the Commissioner 3. Tribunal's subsequent order remanding the matter for fresh adjudication 4. Clarification sought by the Commissioner regarding re-adjudication 5. Application of the doctrine of merger in the appeal process 6. Harmonization of time limits for filing appeals under different sections Analysis: 1. The Tribunal initially reduced the redemption fine and penalty imposed by the Commissioner in the order-in-original. The Tribunal's order dated 21-05-1997 decreased the redemption fine to Rs. 25,00,000/- and penalty to Rs. 1,00,000/-. This resulted in a refund of Rs. 2,50,000/- being granted to the respondents. 2. Subsequently, the Board issued a review order directing the Commissioner to file an appeal with the CESTAT based on various grounds, including the inadequacy of the fine and penalty in relation to the profit margin, the non-deterrent nature of the penalty, and the rejection of the assessed value suggested by an Expert Panel. 3. The Tribunal, after hearing the Revenue's appeal on 26-9-2003, remanded the matter for fresh adjudication due to the absence of the respondents and the failure of the Revenue's representative to highlight the previous order reducing the fine and penalty. 4. The Commissioner sought clarification on whether re-adjudication could proceed based on the Tribunal's order dated 17-10-2003, considering the earlier order of the Tribunal dated 21-5-1997. 5. The Tribunal applied the doctrine of merger, citing the decision in the case of CCE, New Delhi v. LML Ltd., stating that an appeal filed by Revenue after a final order by the Tribunal is not maintainable as the orders merge. The Tribunal recalled its order dated 17-10-2003, emphasizing the merger of the impugned order with the earlier order of 21-5-1997. 6. Referring to the decision of the Supreme Court in Mauria Udyog Ltd. v. CCE, Delhi-II, the Tribunal determined that the doctrine of merger did not apply in this case as the appeal decided earlier was limited to a different question. The Revenue's appeal seeking a deterrent fine and penalty only did not align with the relief granted in the Tribunal's earlier order. 7. Additionally, the Tribunal noted the need to harmonize the time limits for filing appeals under Sections 129A(3) and 129D of the Customs Act, 1962, to prevent the Department from losing its opportunity to pursue an appeal, as seen in this case. The Registry was directed to inform the Member (Legal and Judicial) in the Board to consider steps for such harmonization. This comprehensive analysis covers the issues involved in the legal judgment, detailing the sequence of events, application of legal principles, and the final decision rendered by the Tribunal.
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