2000 (4) TMI 280 - AT - Central Excise

Summary

Issues: Duty liability on electricity, eligibility for Notification No. 51/78-C.E., imposition of penalty

Duty liability on electricity:
The appeal involved the duty liability concerning the excisable commodity 'Electricity' during the relevant time. The Tribunal had previously remanded the matter, finding the appellants ineligible for the benefit of Notification No. 51/78-C.E. due to unfulfilled conditions. The Department was justified in invoking a larger period of five years. Upon readjudication, the Central Excise Commissioner dropped a demand of Rs. 25,64,514.26 and confirmed a demand of Rs. 80,20,704.95, along with imposing a penalty of Rs. 20,000.

Eligibility for Notification No. 51/78-C.E.:
The advocate for the appellants cited Tribunal decisions where similar benefits were granted under Notification No. 51/78 in comparable circumstances. He argued that the Commissioner did not fully comply with the Tribunal's remand observations. The Respondent contended that the Tribunal's finding of non-compliance with the notification's conditions justified the Commissioner's order. The Tribunal confirmed that the conditions of the notification were not met, particularly regarding power sources for auxiliaries.

Imposition of penalty:
The Respondent justified the penalty, stating that it was warranted due to the duty evasion exceeding Rs. 80,00,000, despite a nominal penalty of Rs. 20,000. The Tribunal, considering the appellants as a State Government Undertaking and the absence of current duty on electricity, set aside the penalty amount. The Tribunal upheld the impugned order while canceling the penalty, concluding the case.

This detailed analysis covers the duty liability on electricity, the eligibility for Notification No. 51/78-C.E., and the imposition of the penalty as addressed in the legal judgment by the Appellate Tribunal CEGAT, New Delhi.