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TMI Blog2006 (8) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... gation against M/s. Madanlal Steel and Forgings Ltd. (respondents herein) was that they had received raw materials over and above the accounted quantity and manufactured excisable products and they removed the same clandestinely without accountal in RG 1 Register and without payment of duty. The notice was issued after detailed investigations, wherein it was found from the daily production report (recovered from the factory) that many of the products specifically mentioned in the report were not specified in the RG 1 Register. The total quantity of the goods so specified in the daily production register was taken to be the quantity of clandestine production and, accordingly, a demand of duty of Rs. 27,82,928/- was raised on the party for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1998, was not maintainable. He submitted that, in respect of tax arrear viz. the amounts of duty (Rs. 17,90,369/-) and penalty (Rs. 3 lakhs) demanded in the impugned order, the respondents had filed a declaration with the designated authority under Section 88 of the Finance (No. 2 ) Act, 1998 and the relevant Rules framed thereunder and that the dispute was settled as per the certificate dated 9-3-1999 issued under Section 90 of the said Act by the designated authority. Ld. counsel referred to the said certificate (copy available on record) and submitted that the certificate had been issued upon payment, by the respondents, of the amount determined by the designated authority. After such settlement of dispute, it was not open to the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest, disputed income, disputed wealth, dispute value of gift or tax arrear (except where the tax arrear comprises only penalty, fine or interest), the appellate authority shall decide the appeal irrespective of such declaration. The proviso was struck down by the Hon ble Delhi High Court in the case of All India Federation of Tax Practitioners v. UOI, 1998 (104) E.L.T. 595 (Del.). Consequently, any appellate authority cannot proceed to decide any issue relating to the disputed tax arrear (in respect of which an order has been made under Section 90 by the designated authority upon payment of the amount determined under that Section) in an appeal filed by the department. 5. In the impugned order, learned Commissioner adopted the dif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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