2022 (2) TMI 450 - AT - Central Excise

Benefit of reduced penalty - the issue in respect of other co-noticees was heard by the tribunal and remanded back to the original authority - HELD THAT - Since the matter of other co-noticees is pending before the original authority (Commissioner, Palghar), in remand proceedings as per the CESTAT order, these matters also need to be remanded back to same Commissioner for consideration along with the matters of other co-noticees. Appeals are allowed and the matter remanded back to the original authority for consideration along with the matters earlier remanded in case of other co-noticees - appeal allowed by way of remand.

Summary

Issues involved:
1. Adjudication of show cause notices by the Commissioner Central Excise Thane II.
2. Inadmissibility of cenvat credit under CENVAT Credit Rules, 2002/2004.
3. Determination of demand under Section 11A(2) of the Central Excise Act, 1944.
4. Recovery of interest under Section 11AB of the Central Excise Act, 1944.
5. Imposition of penalties under Section 11AC of the Central Excise Act, 1944 and relevant rules.
6. Appropriation of Central Excise duty reversed/paid.
7. Benefit of reduced penalty under Section 11AC of Central Excise Act, 1944.
8. Remanding of matters to the original authority for consideration.

Adjudication of Show Cause Notices:
The appeals were directed against the order in original No 16 to 78/PKA/Th-II/2012 dated 5th June 2012 of the Commissioner Central Excise Thane II. The Commissioner adjudicated a number of show cause notices issued to various noticees, determining inadmissible cenvat credit under the CENVAT Credit Rules, 2002/2004, and imposing demands, interest, and penalties under the Central Excise Act, 1944 and relevant rules.

Benefit of Reduced Penalty:
All the noticees mentioned in the appeals were allowed to avail of the benefit of reduced penalty under the first and second proviso to Section 11AC of the Central Excise Act, 1944. The reduced penalty was applicable if the duty determined and interest payable were paid within thirty days from the date of communication of the order by the Central Excise Officer.

Remanding of Matters:
The tribunal had previously remanded the issue of other co-noticees back to the original authority for consideration. The matter against the other co-noticees was still pending before the Commissioner in remand proceedings. The appeals were allowed, and the matters were remanded back to the original authority for consideration along with the matters of other co-noticees.

This detailed analysis covers the adjudication of show cause notices, inadmissibility of cenvat credit, determination of demands, recovery of interest, imposition of penalties, appropriation of Central Excise duty, benefit of reduced penalty, and the remanding of matters for consideration. The judgment addressed various legal aspects and procedural requirements under the Central Excise Act, 1944 and relevant rules, ensuring a comprehensive review and decision on the issues involved.