2006 (6) TMI 52 - AT - Central Excise

Registration - Alleged that after surrendering registration certificate assesse can t continue production activity-rejection of surrender not sustainable - Revenue made clear dues if any can be recovered by the revenue

Summary

Issues: Appeal against surrender of registration certificate and recovery of pending duty demand.

Analysis:
1. Surrender of Registration Certificate:
The Revenue filed an appeal against the order-in-appeal passed by the Commissioner (Appeals) regarding the surrender of a registration certificate. The Commissioner (Appeals) held that there is no provision under the Central Excise Act restricting an assessee from surrendering the certificate when ceasing goods' manufacture. The Revenue contended that the surrender is subject to statutory obligations, including payment of all dues to the government. However, as the respondent had stopped production and surrendered the certificate, the Commissioner (Appeals) found no fault in rejecting the surrender. The Tribunal agreed that any pending dues could be recovered under the Central Excise Act/rules, dismissing the appeal.

2. Recovery of Pending Duty Demand:
The Revenue argued that the order by the lower authority was not appealable, challenging the Commissioner (Appeals) decision on recovery of pending duty demand. The Revenue claimed that the recovery could be made after compliance with statutory obligations, including duty on finished excisable goods. The Commissioner (Appeals) noted that there were no allegations of manufacturing excisable goods by the respondent, who surrendered the certificate due to halted production. The Commissioner (Appeals) found no issue with rejecting the surrender, as all dues, if any, could be recovered under the law. The Tribunal upheld the decision, emphasizing that the Revenue could recover any dues under the existing provisions, ultimately dismissing the appeal.