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Showing 321 to 340 of 735 Records
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2009 (11) TMI 714
The Appellate Tribunal CESTAT Bangalore waived the penalty imposed on the appellant for failure to properly examine and assess foreign parcels containing computer parts not covered under duty free import notification. The Tribunal found the appellant's role unclear and lacking evidence for imposition of penalty, thus waiving the pre-deposit and staying the recovery of penalty amounts pending appeal.
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2009 (11) TMI 713
Valuation - whether, in respect of supplies made in terms of DGS&D contract, the valuation under Section 4A, is applicable? - Held that: - identical issue decided in the case of PURISONS ENGINEERS PVT. LTD. Versus COMMISSIONER OF C. EX., DELHI-II [2003 (12) TMI 113 - CESTAT, NEW DELHI], where it was held that since consignments in question were cleared to DOT in terms of the requirement under Standards and Measures Act and Packaged Commodities Rules they were required to be valued under Section 4A and not under Section 4 - appeal allowed - decided in favor of appellant.
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2009 (11) TMI 712
Issues:
1. Admissibility of benefit under Notification No. 6/2006-C.E.
2. Confiscation of goods under Section 111(m) of the Customs Act, 1962.
3. Imposition of penalty on the importer.
Admissibility of benefit under Notification No. 6/2006-C.E.:
The appellants filed a Bill of Entry seeking clearance of sewing machines under the EPCG scheme and exemption from additional duty of customs under Notification No. 6/2006-C.E. The machines were supplied with motors, which were not explicitly mentioned in the Bill of Entry. The department held the benefit of the notification as inadmissible, confirming a differential duty demand. The Tribunal noted that the packing list and invoice clearly indicated the presence of motors. It was established that there was no misdeclaration of goods, and the claim for notification benefit was not mala fide. Citing a previous Tribunal decision, the Tribunal upheld the differential duty demand but set aside the confiscation, fine, and penalty.
Confiscation of goods under Section 111(m) of the Customs Act, 1962:
The goods in question were confiscated under Section 111(m) of the Customs Act, 1962 due to the perceived inadmissibility of the benefit under Notification No. 6/2006-C.E. The Tribunal, upon review, found that the description of goods in the packing list and invoice was accurate, clearly indicating the presence of motors. It was concluded that there was no misdeclaration that warranted confiscation. The Tribunal also considered the absence of mala fide intent on the part of the appellants, as evidenced by the submission of relevant documents. Consequently, the Tribunal set aside the confiscation of goods.
Imposition of penalty on the importer:
In addition to the confiscation, a penalty of Rs. 1 lakh was imposed on the importer. The Tribunal, after considering the facts and legal precedents, determined that the appellants did not engage in any mala fide actions regarding the benefit claim under the notification. The Tribunal referred to a specific case law to support the decision to set aside the penalty. Therefore, the Tribunal allowed the appeal to the extent of setting aside the penalty, along with the confiscation and fine, while upholding the differential duty demand.
This detailed analysis of the judgment highlights the issues of admissibility of benefit under a specific notification, confiscation of goods under the Customs Act, and imposition of penalties, providing a comprehensive understanding of the Tribunal's decision in this case.
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2009 (11) TMI 711
Issues involved: Appeal involving duty amount and penalty set aside by Commissioner (Appeals).
Issue 1: Inclusion of freight and insurance in assessable value
The respondent supplied ACSR Conductors to UP Power Corporation Limited on FOR destination basis. The Original Authority included the value of freight and insurance in the assessable value, demanding duty and penalty. However, the Commissioner (Appeals) relied on the decision of the Hon'ble Supreme Court in Escorts JCB Ltd. v. CCE, Delhi-II and other decisions, allowing the appeal on merits and limitation grounds. The Department claimed that in a FOR destination supply, the sale is effected at the supplier's end, but the Tribunal disagreed, stating there is no legal basis for such a claim. The Commissioner rightly held that the freight from the factory gate to the buyer's premises, under a separate contract, should not be included in the assessable value. The Tribunal found no valid grounds to interfere with this finding, agreeing with the Commissioner's decision and rejecting the Department's appeal.
(Order dictated and pronounced in the open Court)
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2009 (11) TMI 710
The Appellate Tribunal CESTAT NEW DELHI ruled that Education Cess and Higher Education Cess paid by the assessee are not refundable under Notification No. 56/2002-C.E. The Tribunal stayed the impugned order pending appeal.
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2009 (11) TMI 709
Issues:
- Demand of duty on sub-assemblies in the intermediate stage of manufacture of exempted tractors.
- Requirement of marketability for excisability of a product.
- Dispute regarding the need for bringing the theory of marketability in the case.
- Decision on the Department's appeal and the cross-objection filed by the respondents.
Analysis:
1. The judgment revolves around the demand of duty amounting to Rs. 8,66,51,828 on sub-assemblies in the intermediate stage of manufacturing exempted tractors. The adjudicating Commissioner's detailed order concluded that these sub-assemblies do not meet the marketability condition and hence are not subject to excise duty. However, the Department's appeal, based on the Board's review order, contested the necessity of proving marketability. The Tribunal noted the established principle that for a product to be excisable, it must fulfill both the criteria of manufacture and marketability. Despite the Board's stance, no evidence was presented to establish the marketability of the sub-assemblies. Consequently, the Tribunal upheld the adjudicating Commissioner's order, rejecting the Department's appeal.
2. The second issue addressed the cross-objection filed by the respondents. The Tribunal clarified that the cross-objection essentially functioned as a response to the Revenue's appeal. As a result, the Tribunal disposed of the cross-objection in light of the decision on the Department's appeal. The judgment emphasized the importance of meeting the dual criteria of manufacture and marketability for a product to be subject to excise duty, highlighting the need for evidentiary support to establish marketability in disputed cases. The Tribunal's decision to reject the Department's appeal underscored the significance of adhering to established legal principles in excise matters, ensuring clarity and consistency in tax liability determinations.
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2009 (11) TMI 708
Issues:
1. Rejection of refund claim due to classification dispute and appeal withdrawal.
2. Application for restoration of appeal based on Tribunal's decision on similar dispute.
3. Applicability of Mafatlal Industries Ltd. case on refund claim.
4. Comparison with State of Bihar and Others v. Tata Engineering & Loco Co. Ltd. case and CCE v. Smithkline Beecham Co. Health Co. Ltd. case.
Analysis:
1. The appeal pertains to the rejection of a refund claim by the assessee following a classification dispute settled by the original authority, classifying goods under heading 85.05 of the Central Excise Tariff Schedule. A demand of duty was confirmed against the assessee for a specific period. The appeal to the Commissioner of Central Excise (Appeals) was withdrawn by the assessee, leading to its dismissal. Subsequently, the assessee sought restoration of the appeal based on a Tribunal decision classifying similar goods under a different heading. However, both the appellate Commissioner and this Tribunal rejected the restoration application, upholding the original authority's decision. The rejection of the refund claim was deemed appropriate as per the ruling in the Mafatlal Industries Ltd. case, which states that a refund claim cannot be entertained if an appealable order confirming duty demand exists without successful challenge.
2. The appellant cited the State of Bihar and Others v. Tata Engineering & Loco Co. Ltd. case and the CCE v. Smithkline Beecham Co. Health Co. Ltd. case to support their position. In the former case, the Supreme Court disposed of an appeal related to a mining lease after the lease had expired, indicating that the judgment of the High Court would not hinder the appellant from granting a new lease. The latter case involved an appeal dismissed by the Commissioner (Appeals) due to a pre-deposit issue, which was later decided on merits by the Tribunal without the pre-deposit. The Supreme Court disapproved of the Tribunal's decision and remanded the case for a merits decision by the Commissioner (Appeals). However, the Tribunal found that neither of these cases provided relevant support for the present appeal.
3. Ultimately, the Tribunal upheld the impugned order and dismissed the appeal, indicating that the rejection of the refund claim was justified based on the existing legal precedents and the specific circumstances of the case.
This comprehensive analysis outlines the key issues, legal arguments, and the Tribunal's decision in the case, covering the classification dispute, appeal withdrawal, restoration application, relevant legal precedents, and the final outcome of the appeal.
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2009 (11) TMI 707
Issues involved: Application for waiver of pre-deposit and stay of recovery u/s Rs. 26,84,233 duty; Denial of benefit of Notification No. 6/2007 C.E. dated 1-3-07 (Sr. No. 8B) on water purification equipment.
The appellant sought waiver of pre-deposit and stay of recovery for duty amounting to Rs. 26,84,233, which was demanded by the lower authorities by denying the benefit of Notification No. 6/2007 C.E. dated 1-3-07 (Sr. No. 8B). The Notification provided full exemption from duty on water purification equipment, specifically mentioning technologies like Reverse Osmosis Technology using Thin Film Composite Membrane. The appellant imported an item declared as "Reverse Osmosis Membrane" and claimed eligibility for the Notification's benefit. However, after considering submissions from both parties and examining the relevant Tariff entries, the Tribunal did not find a prima facie case for the appellant. It was clarified that only complete water purification equipment based on specified technologies could avail the Nil rate of duty, and the Reverse Osmosis Membrane alone did not qualify as such equipment. The Tribunal noted that parts of equipment, including membranes, were separately classified under specific sub-headings which were not covered by the exemption Notification.
The Tribunal concluded that the appellant failed to establish a prima facie case or demonstrate financial hardships. Consequently, the Tribunal directed the appellant to pre-deposit the entire duty demand within four weeks, with a compliance report due on 4-1-2010.
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2009 (11) TMI 706
Issues:
Penalization under Rule 173Q of Central Excise Rule, 1944.
Detailed Analysis:
The judgment revolves around the issue of penalization under Rule 173Q of the erstwhile Central Excise Rule, 1944. The appellant, represented by the SDR, appealed against the penalty imposed by the original authority. The crucial question was whether the respondent should be penalized as per Rule 173Q. Despite notice, the respondent did not appear, but a letter seeking adjournment was submitted by an advocate without a Vakalatnama, which was not accepted. The Tribunal proceeded to examine the records and found that the Commissioner (Appeals) had made significant findings that were overlooked by the appellant.
Crucial Findings:
The lower appellate authority had noted that the respondent had intimated the department about taking the Modvat credit in question and that the credit was frozen at the instance of the department, indicating it was not utilized for duty payment. The reversal of credit by the respondent was done under protest after receiving show-cause notices. It was evident that there was no concealment from the department, and a dispute existed regarding the credit's admissibility. The original authority had imposed a penalty without citing any specific provision, which was set aside by the Commissioner (Appeals). The Commissioner found no evidence of deliberate defiance of the law by the respondent, which remained unquestioned in the current appeal.
Decision:
Based on the above analysis, the Tribunal upheld the order of the Commissioner (Appeals) and dismissed the appeal of the Revenue. The judgment emphasized the importance of considering all relevant findings and evidence before imposing penalties and highlighted the need for a clear legal basis for such actions.
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2009 (11) TMI 705
Issues:
1. Central Excise duty demand and Customs duty demand on imported raw material.
2. Penalty imposed under Section 11AC of Central Excise Act and Sections 112 and 114 of Customs Act.
3. Payment of duty, interest, and penalty within the specified time frame.
4. Penalty imposed on the partner.
Analysis:
1. The case involved M/s. Akash Fabrics, a 100% EOU engaged in manufacturing various fabrics and yarn for captive consumption. A shortage of Polyester Texturised Yarn was found during a stock verification, leading to Central Excise duty demand of Rs. 1,32,356/- and Customs duty demand of Rs. 2,58,035/- on the imported raw material used. The partner admitted the shortage and non-payment of Central Excise duty on the removed goods. The impugned order confirmed the duty demands and imposed penalties under relevant sections.
2. The appellants, despite not appearing in person, submitted written arguments. They contended that once excise duty was demanded on finished goods, no duty on inputs could be levied. Citing relevant tribunal decisions, the judge found in favor of the appellants, setting aside the Customs duty demand and the corresponding penalties under Sections 112 and 114 of the Customs Act.
3. Regarding penalties, the appellants claimed to have paid the entire duty and 25% of the penalty within 30 days of the adjudication order. However, the judge noted that interest had not been paid, and the lower authorities did not specify the payment provisions. Referring to precedents, the appellants were given the option to pay interest within 30 days to fulfill the payment requirements. Failure to comply within the stipulated time would result in a penalty equivalent to the Central Excise duty under Section 11AC.
4. In consideration of the total duty demanded and penalties imposed on the firm and partner, the judge reduced the penalty on the partner from Rs. 50,000 to Rs. 10,000. The appeals were decided accordingly, with the pronouncement made on 10th November 2009.
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2009 (11) TMI 704
Issues:
- Imposition of penalty under Rule 25 read with Section 11AC of the Central Excise Act.
Detailed Analysis:
Issue 1: Imposition of Penalty under Rule 25 read with Section 11AC
The central question in this case was whether a penalty should be imposed on the appellant under Rule 25 in conjunction with Section 11AC of the Central Excise Act. The appellant had already paid the differential duty on the goods in question along with interest. A penalty of Rs. 22,000 was imposed on the appellant under Rule 25 by the adjudicating authority, who opined that Section 11AC was not applicable. The Commissioner (Appeals) upheld the penalty under Rule 25, citing that the appellant had contravened rules by removing goods. The appellant contended that the penalty was arbitrary and lacked legal basis, emphasizing the absence of mens rea and evidence indicating intent to violate rules. The appellant argued that the penalty was imposed on mere suspicion or assumption without factual support in the show-cause notice. The appellant relied on precedents where penalties were deemed unsustainable when the relevant rule clauses were not specified in the notice.
Issue 2: Allegations and Evidence in Show-Cause Notice
The appellant argued that the penalty under Rule 25 could not be sustained as the show-cause notice did not specify the relevant clause (a) of the rule or provide evidence of contravention of rules. The appellant highlighted the necessity for the department to allege requisite facts in the notice when invoking a provision against the party. The Tribunal emphasized that for invoking clause (a) of Rule 25, the show-cause notice must allege the removal of excisable goods in contravention of rules or notifications, specifying the identity of goods, the fact of removal, and the specific rule or notification breached. The Tribunal noted that the department's failure to allege these facts in the notice rendered the penalty unsustainable. The Tribunal referred to established case law requiring the department to include necessary facts in the show-cause notice when invoking a provision, failing which the penalty cannot be upheld.
Conclusion:
The Tribunal found that the penalty imposed under Rule 25 was unsustainable due to the absence of requisite facts in the show-cause notice, leading to the penalty being vacated. The appeal was allowed in favor of the appellant, emphasizing the importance of alleging necessary facts in the notice when invoking a penalty provision.
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2009 (11) TMI 703
Waiver of pre-deposit - N/N. 21/2002-Cus., dated 1-3-2002 as amended by N/N. 20/2007 and N/N. 61/2007, dated 3-5-2007 - revenue was of the view that the aircraft was not used exclusively for providing non-scheduled passenger air transport services and therefore there was violation of conditions of N/N. 61/2007 - Held that: - permit has been issued only for passenger services. Prima facie, there is a different permit for charter services and, therefore, the permit given to the applicant may not be valid for rendering charter passenger services. Therefore, the condition of the exemption notification is prima facie, violated. Further, the condition given in the undertaking to the Customs authorities also stands violated. Therefore, on merits, the applicant has not made out a case for waiver of dues - appeal dismissed - decided against applicant.
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2009 (11) TMI 702
Issues:
- Confirmation of demand of duty, interest, and penalty on sale of waste and scrap
- Exemption under Notification No. 65/95 for goods used for repairs or maintenance
- Clearance of scrap without payment of duty
- Proper maintenance of accounts for goods manufactured
- Dismantling and sale of old machinery as scrap
- Adjudication of demand, interest, and penalty
- Challenge before Commissioner (Appeals) and penalty enhancement
- Appeal to Appellate Tribunal CESTAT Mumbai
Confirmation of Demand of Duty, Interest, and Penalty:
The appeal was filed against the confirmation of demand of duty, interest, and equivalent penalty due to the sale of waste and scrap. The appellant, a manufacturer of sugar and molasses, generated scrap during manufacturing processes, including the dismantling of old machinery. The department considered this scrap as dutiable, leading to a demand of Rs. 75,674 along with interest and a penalty. The appellant contested that the waste and scrap were not manufactured products under the Central Excise Act, thus not liable for duty.
Exemption under Notification No. 65/95 and Proper Maintenance of Accounts:
The appellants argued that the waste and scrap generated from old machinery during repairs and maintenance were not subject to duty as per Notification No. 65/95. However, the department contended that the appellants failed to maintain proper accounts for the goods manufactured, including the scrap generated, leading to a demand for duty, interest, and penalty.
Challenge and Penalty Enhancement:
The adjudication order was challenged before the Commissioner (Appeals), who confirmed the demand and enhanced the penalty equal to the duty amount. The appellant further appealed to the Appellate Tribunal CESTAT Mumbai, disputing the imposition of penalty and asserting that the waste and scrap were not dutiable products.
Suppression of Facts and Liability for Duty:
During the investigation, it was revealed that the appellants were manufacturing parts/components in-house and clearing scrap without paying duty or accounting for it properly. The Central Excise officers found that the appellants suppressed facts to evade duty payment, leading to the imposition of demand, interest, and penalty. The Tribunal upheld the decision, stating that the appellants were liable to pay duty on the waste and scrap generated from machinery on which Cenvat credit was availed.
In conclusion, the Tribunal upheld the demand of duty, interest, and penalty on the sale of waste and scrap, rejecting the appellant's arguments regarding exemption, limitation, and penalty imposition. The decision highlighted the importance of proper record-keeping, compliance with excise regulations, and the consequences of suppressing information to evade duty obligations.
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2009 (11) TMI 701
Issues: Interpretation of exemption notifications for Hi-Fi Music Systems and Air Conditioners under Notification No. 8/99-C.E. and Notification No. 10/99-C.E. Calculation of first clearances for full exemption. Consideration of contradictory decisions necessitating reference to Larger Bench.
Interpretation of Exemption Notifications:
The appellants, engaged in manufacturing Hi-Fi Music Systems and Air Conditioners, availed benefits under Notification No. 8/99-C.E. and Notification No. 10/99-C.E. for small scale units. The department contended that clearances under both notifications must be considered for calculating first clearances eligible for full exemption unless the notifications are not based on quantity or value of clearances. Lower authorities relied on a Tribunal decision in a similar case for this interpretation.
Stay Order and Modification Application:
During a hearing, no representation was made on behalf of the appellants, leading to an ex-parte stay order demanding a deposit of 50% of the duty. The appellants later filed a modification application citing genuine difficulties in representation. The advocate highlighted a Tribunal decision supporting their case and argued that the stay order was unjustified.
Contradictory Decisions and Larger Bench Reference:
The advocate presented conflicting decisions on the issue, emphasizing that subsequent judgments favored the appellants' interpretation of the notifications. The department acknowledged the contradictory nature of the decisions and agreed that the matter might warrant a reference to a Larger Bench. However, the Tribunal found that subsequent decisions aligned with the appellants' position, making a Larger Bench reference unnecessary.
Decision and Rationale:
After considering arguments and relevant provisions, the Tribunal decided to address the appeals alongside the modification application instead of solely focusing on the stay petition. It was established that clearances under both notifications need not be combined for calculating first clearances eligible for exemption. The Tribunal noted that subsequent decisions supported the appellants' stance, rendering a Larger Bench reference unwarranted. Consequently, the appeals were allowed in favor of the appellants, granting them consequential relief.
This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, the Tribunal's decision, and the rationale behind the judgment.
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2009 (11) TMI 700
Issues involved: Interpretation of Section 11AC of Central Excise Act, 1944 for imposition of penalty on manufacturer and director.
The Hon'ble Gujarat High Court remanded the matter to the Tribunal to examine the applicability of Section 11AC of Central Excise Act, 1944 in light of relevant legal precedents. The Court set aside the previous Tribunal order and directed a reevaluation based on the law laid down by the Hon'ble Supreme Court in specific cases. The Tribunal found that while the mandatory penalty under Section 11AC applies to the manufacturer, the penalty on the Director was imposed under a different rule, not u/s 11AC. Therefore, the Tribunal confirmed the reduction of penalty imposed on the Director to Rs. 35,000 as per the earlier order.
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2009 (11) TMI 699
Issues:
Refund of duty paid during August 2008 - Applicability of Notification No. 37/2007-Central Excise - Eligibility for rebate of duty paid on exports for units availing area-based exemption.
Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad revolves around the refund claim of Rs. 57,31,054 related to duty paid in August 2008. The Commissioner (Appeals) set aside the Original Adjudicating Authority's order rejecting the refund. The Revenue contended that Notification No. 37/2007-Central Excise prohibits rebate for units availing benefits under Notification No. 39/2001-Central Excise. The Respondents were availing such benefits, leading to the challenge of the Commissioner's decision. The Tribunal noted the Commissioner's consideration of the issue, emphasizing the exclusion of units availing area-based exemption from rebate eligibility as per the mentioned Notification. The Commissioner found fault with the lower authority for deducting the duty paid amount from the refund, declaring the appellants eligible for the refund.
In the absence of a clear rationale in the Commissioner's order, despite acknowledging the Notification's exclusion clause, the Tribunal allowed the Revenue's stay petition during the appeal process. The Tribunal highlighted the lack of discussion or reasoning in the Commissioner's decision regarding the Respondents' eligibility for the refund, especially given the significant amount at stake. The judgment underscores the importance of providing detailed justifications in decisions, particularly concerning statutory provisions and their impact on refund claims. The Tribunal's decision to grant the stay petition reflects the need for a thorough examination of legal provisions and their application in refund matters to ensure fairness and compliance with the law.
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2009 (11) TMI 698
Issues:
Cenvat credit reversal on furnace oil used in manufacturing Rough Steel Forgings cleared without duty; Classification of finished goods as exempted goods; Utilization of Cenvat credit for payment of duty on waste and scrap; Imposition of penalty under Rule 15 of Cenvat Credit Rules, 2004.
Analysis:
The judgment deals with the issue of Cenvat credit reversal amounting to Rs. 1,43,298/- taken by the assessees for manufacturing Rough Steel Forgings cleared without payment of duty to sister units. The Tribunal directed the reversal of credit on the grounds that the forged steel was considered exempted goods and that waste and scrap generated during the manufacturing process were not considered as a result of manufacture. Additionally, a penalty of Rs. 10,000/- was imposed on the assessees under Rule 15 of the Cenvat Credit Rules, 2004.
In the case of Sterlite Industries (I) Ltd. v. CCE, Pune, the Larger Bench of the Tribunal held that finished goods cleared without payment of duty under certain notifications cannot be classified as exempted goods. Based on this precedent, the judge in the present case ruled that the assessees were not obligated to reverse the Cenvat credit taken on furnace oil used in manufacturing Rough Steel Forgings cleared without duty. Furthermore, referring to a circular issued by the CBEC, it was clarified that Cenvat credit could be utilized for the payment of duty on waste and scrap since they were considered final products within the defined rule.
Consequently, the judge set aside the impugned order and allowed the appeal, indicating that the assessees were not required to reverse the credit for payment of duty on waste and scrap. The operative part of the order was pronounced in open court on 20-11-2009, thereby concluding the matter in favor of the appellants.
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2009 (11) TMI 697
Natural justice - clandestine removal - Held that: - unless the documents which are relied upon and form basis for calculation of duty are provided to the appellant, it cannot be said that principles of natural justice have been observed - in the earlier rounds of litigation, there was no specific direction by the Tribunal that relied upon documents should be provided before adjudication. In view of the above discussion, we allow the stay petition unconditionally, set aside the impugned order and remand the matter back to the original adjudicating authority, to decide the matter afresh - appeal allowed by way of remand.
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2009 (11) TMI 696
The judgment directs reversal of credit on jigs, fixtures, moulds, and dies not returned within 180 days under CENVAT Credit Rules, 2004. The Tribunal decision states no liability for reversal based on return condition. The appellants already reversed the credit, contesting interest payment. The direction for interest payment is set aside based on Tribunal's decision, and the appeals are allowed.
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2009 (11) TMI 695
Issues: Duty demand under CENVAT Credit Rules, 2002; Suppression of facts leading to penalty imposition.
Duty Demand under CENVAT Credit Rules, 2002:
The judgment confirms a duty demand of Rs. 1,23,729 against the assessees for availing CENVAT credit on certain inputs and clearing them as defectives without paying duty, contravening Rule 3(5) of the CENVAT Credit Rules, 2002. The extended period of Limitation was applied due to suppression. The demand was upheld with interest and penalty imposed under Section 11 AC of the Central Excise Act, 1944. The assessees contended before the Commissioner (Appeals) that they did not suppress any facts and, therefore, penalty was unjustified. However, the Commissioner (Appeals) upheld the order, leading to this appeal.
Suppression of Facts Leading to Penalty Imposition:
The judgment finds the assessees guilty of suppressing facts with the intention to evade duty payment. This conclusion was based on the assessees' actions of raising invoices detailing the value and duty payable on clearances of defective inputs, indicating awareness of their duty liability. Despite this, they did not pay duty on clearing the defective inputs. Additionally, the admission of the Chairman & Managing Director of the assessees further supported the charge of suppression. Consequently, the assessees were deemed liable for penalty under Section 11 AC of the Central Excise Act, 1944. The judgment upholds the penalty, stating that the charge of suppression was clearly established, and rejects the appeal.
This judgment highlights the importance of complying with duty payment obligations under the CENVAT Credit Rules, 2002 and emphasizes the consequences of suppressing facts to evade duty liability. The decision underscores the significance of maintaining transparency in financial transactions and fulfilling duty obligations to avoid penalties and legal repercussions.
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