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2013 (5) TMI 90 - AT - Central Excise


Issues involved:
Stay Petitions against Order-in-Original confirming demand of ineligible CENVAT Credit, interest, and penalty on M/s Narmada Fabrics Pvt. Ltd.; Abatement of appeal filed by M/s Narmada Fabrics Pvt. Ltd. due to winding up order; Penalties imposed on directors under Rule 26 of Central Excise Rules, 2002.

Analysis:

1. The Stay Petitions were filed against an Order-in-Original confirming the demand of ineligible CENVAT Credit, interest, and penalty on M/s Narmada Fabrics Pvt. Ltd. The Tribunal noted that the petitions were interlinked and disposed of them collectively. Upon hearing both sides and examining the records, it was found that the winding up order of the High Court of Gujarat directed the winding up of M/s Narmada Fabrics Pvt. Ltd. As per Rule 22 of the CESTAT Procedure Rules, the appeal filed by the company abated due to the winding up order, rendering the Stay Petition and appeal infructuous. Consequently, the Tribunal dismissed the Stay Petition and appeal filed by M/s Narmada Fabrics Pvt. Ltd.

2. Concerning the penalties imposed on directors Umashankar G. Kudal and R.C. Agarwal under Rule 26 of Central Excise Rules, 2002, the adjudicating authority found them liable based on their roles as directors of M/s Narmada Fabrics Pvt. Ltd. The Tribunal acknowledged the need to assess whether the actions were committed by the company and emphasized the necessity of examining the evidence on record. Therefore, the Tribunal decided to allow Kudal and Agarwal the opportunity to present their case by directing them to deposit a specified amount within a stipulated timeframe and report compliance to the Deputy Registrar, CESTAT, Ahmedabad.

3. Consequently, the Tribunal directed Umashankar G. Kudal and R.C. Agarwal to each deposit Rs.50,000 within eight weeks and report compliance by a specified date. Upon verification of compliance, the Tribunal would review the matter further. Pending compliance, applications for waiver of pre-deposit of the remaining amounts were allowed, and recovery was stayed until the appeals were resolved.

 

 

 

 

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