2016 (5) TMI 1215 - HC - Central Excise

Imposition of penalty - Delay in payment of duty - Whether penalty imposable under Rule 27 or under Rule 25 of the Central Excise Rules, 2002 - Held that - in view of the judgment made by the High Court of Gujarat in the case of Commissioner of C. Ex. & Customs versus Saurashtra Cement Ltd. 2010 (9) TMI 422 - GUJARAT HIGH COURT , the penalty could not be levied under Rule 25 of the Rules. - Appeal disposed of

Summary

Issues:
1. Interpretation of legal precedent set by the High Court of Gujarat.
2. Application of the principle of deference to the law laid down by other High Courts.
3. Disposal of the appeal based on the precedent and directions from the Supreme Court.

Analysis:
1. The appellant's counsel referred to a judgment by the High Court of Gujarat in a specific case, establishing that the issue in the current appeal had already been determined in that case. The judges acknowledged this reference and agreed that the issue in the present appeal aligns with the one covered in the Gujarat judgment. This recognition of precedent plays a crucial role in determining the outcome of the current case.

2. The judges highlighted a recent directive from the Supreme Court emphasizing the importance of giving due deference to the legal decisions of other High Courts. They quoted a specific paragraph from the Supreme Court's judgment, underlining the significance of respecting decisions made by different High Courts to avoid legal chaos and inconsistency. This principle of deference to established legal rulings serves as a guiding factor in the resolution of the present appeal.

3. Based on the acknowledgment of the precedent set by the High Court of Gujarat and the directive from the Supreme Court regarding deference to legal decisions, the judges disposed of the appeal. They concluded that the judgment from the Gujarat High Court would be considered part of their decision, indicating a clear application of the legal principle of following established precedents. Additionally, any pending applications related to the appeal were also resolved in accordance with the disposition of the main appeal, ensuring a comprehensive and conclusive outcome based on legal precedents and directives from higher courts.