1998 (4) TMI 203 - AT - Central Excise

Summary

Issues:
1. Imposition of penalty and cancellation of registration certificate under Rule 173Q.
2. Comparison with previous cases regarding penalty imposition.
3. Similarity with pending cases and request for keeping the matter in abeyance.
4. Plea for reduction in penalty and cancellation of registration certificate.
5. Consideration of pleas and final decision on penalty and registration certificate.

Analysis:
1. The Commissioner of Central Excise imposed a penalty of Rs. 35,000 and ordered the cancellation of the appellant's registration certificate under Rule 173Q for allegedly abetting in the evasion of Central Excise duty by irregularly passing on Modvat credit without actual transactions. The appellant challenged the penalty and cancellation, arguing that the penalty was arbitrary and the cancellation was unjustified.

2. The appellant's consultant compared the present case to previous judgments, highlighting that the registration certificate cannot be revoked for breaching Rule 57GG. He emphasized the need for a fair and consistent approach in imposing penalties, especially considering the quantities of excisable products involved.

3. The Respondent's JDR requested to keep the matter in abeyance due to similarities with pending cases where a difference of opinion existed. However, the Tribunal rejected this request, considering the impact on the appellant's business and livelihood due to the cancellation of the registration certificate.

4. The appellant's consultant vehemently contested the findings, arguing against the penalty and cancellation. He emphasized that the appellant did not plead guilty and sought a reduction in the penalty to avoid further litigation and focus on the business.

5. The Tribunal quashed the cancellation of the registration certificate and set aside the penalty of Rs. 35,000, citing arbitrariness in the penalty imposition. The Tribunal directed the adjudicating authority to re-examine the penalty issue, keeping it pending until a final decision in a related case is available. The appellant was entitled to a refund of the penalty amount paid.

This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive understanding of the arguments presented and the Tribunal's final decision.