2000 (3) TMI 557 - AT - Central Excise

Summary

Issues:
1. Pre-deposit of penalty amount.
2. Appeal against the impugned order dated 5th February 1999.
3. Validity of show cause notice and penalty confirmation.
4. Denial of benefit of Notification No. 175/86 dated 1-3-1986.
5. Requantification of duty amount and penalty.

Pre-deposit of Penalty Amount:
The Appellate Tribunal, considering the circumstances where duty remained unquantified but penalty was confirmed, allowed the stay application of the appellants, dispensing with the pre-deposit of the penalty amount.

Appeal Against the Impugned Order:
The appeal was filed against the order modifying the duty amount and confirming penalties on the firm and its partners. The Commissioner (Appeals) remitted the case to the Additional Commissioner for recalculating the duty amount and set aside penalties on partners but confirmed the penalty on the firm.

Validity of Show Cause Notice and Penalty Confirmation:
The counsel for the appellants challenged the validity of the impugned order, arguing improper service of the show cause notice and the need for quantifying duty before confirming penalties. The Tribunal noted the Commissioner (Appeals) did not accept the duty amount confirmed by the Additional Commissioner, indicating the penalty confirmation was not legally sustainable without quantifying the duty amount.

Denial of Benefit of Notification No. 175/86:
The appellants were denied the benefit of a notification as they were not registered as an SSI unit. The Tribunal directed the adjudicating authority to reconsider this aspect after reworking the duty and penalty amounts.

Requantification of Duty Amount and Penalty:
The Commissioner (Appeals) directed the Additional Commissioner to recalculate the duty amount, leading to the need for reassessment of the penalty amount. The Tribunal emphasized the importance of natural justice and providing a reasonable opportunity for the appellants to present their case.

In conclusion, the appeal was disposed of with directions for the adjudicating authority to expedite the proceedings while ensuring a fair opportunity for both parties.