Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2000 (8) TMI AT This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2000 (8) TMI 756 - AT - Central Excise

Issues: Jurisdiction of Commissioner of Central Excise, Demand of Central Excise Duty, Confiscation of Capital Goods, Imposition of Penalties

Jurisdiction of Commissioner of Central Excise:
The case involved a dispute over the jurisdiction of the Commissioner of Central Excise in enforcing the Customs Act following the issuance of a notification bifurcating functions. The appellant argued that the Commissioner lacked jurisdiction to confiscate capital goods imported by a 100% Export Oriented Unit. The Tribunal held that the Commissioner did not have the authority to implement or enforce the Customs Act, thus setting aside the confiscation of the capital goods.

Demand of Central Excise Duty:
Regarding the demand of Central Excise Duty amounting to Rs. 1,05,195, it was found that the goods were sold in the domestic tariff area, making them liable for the payment of Central Excise Duty. The Tribunal upheld the correctness of the duty demand in this regard.

Confiscation of Capital Goods:
The authorities had confiscated certain goods fully manufactured and also the plant and machinery imported by the 100% Export Oriented Unit. However, the Tribunal set aside the confiscation of the capital goods as the Commissioner lacked jurisdiction to do so under the Customs Act.

Imposition of Penalties:
The Tribunal addressed the penalties imposed on the parties involved. Initially, a penalty of Rs. 10 lakhs on M/s. Gurdarshan Leather was deemed excessive, and under Section 11AC, the penalty amount was restricted to the duty equivalent. Consequently, the penalty was reduced to Rs. one lakh. Similarly, the penalty of Rs. one lakh on M/s. Drish Shoes Ltd. was also reduced to Rs. 10,000, considering the circumstances of the case. The Tribunal modified the penalties imposed on both parties accordingly, concluding the appeals in the specified terms.

 

 

 

 

Quick Updates:Latest Updates