2024 (3) TMI 280 - SCH - Central Excise

Evasion of duty- demand confirmed on the ground that units floated and controlled by two persons and materials and capital goods exchanged and cash seized - the Tribunal has remanded the matter to the Adjudicating Authority - HELD THAT - The finding by Tribunal is just and proper and appropriate, having regard to the reasons assigned for the same. As far as the aspects on which the remand has been made, it is found that the Adjudicating Authority would now have to reconsider the said aspects in accordance with law and in light of the observations made by the Tribunal in the impugned order. Appeal dismissed.

Summary

Issues Involved:
The issues involved in this case are the invocation of Section 11A against a non-existent entity, reworking demand of duty for independent units, granting benefit of exemption Notification No.5/98 to individual units, consideration of evidence on clandestine removals, and remand to the Adjudicating Authority for reconsideration.

Invocation of Section 11A:
The Tribunal held that Section 11A cannot be invoked against a non-existent entity like "SP Group" and can only be invoked against existing independent units. The Tribunal directed the Adjudicating Authority to rework any demand of duty against independent units in accordance with the law.

Benefit of Exemption Notification:
The Tribunal emphasized that the benefit of exemption under Notification No.5/98 should be given to individual units if any demand of duty is to be confirmed. It noted the absence of findings on clandestine removals by independent units and instructed the Adjudicating Authority to reconsider this issue.

Remand and Reconsideration:
The Tribunal set aside the impugned order and remanded the matter to the Adjudicating Authority for reconsideration. The Adjudicating Authority was directed to reassess the issue of clandestine removal, confirmation of demand against individual units, and to reconsider the evidence presented by the appellants on cash seized and capital goods found in other premises.

Final Decision:
The Supreme Court upheld the Tribunal's findings on the invocation of Section 11A and the need for remand and reconsideration by the Adjudicating Authority. Consequently, the appeals were dismissed, and any pending applications were disposed of.