9911796707
TMI Blog2010 (8) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... 'Articles of branded Jewellery' falling under chapter heading 7113 of the CETA, 1985 and such duty was payable with effect from 1-3-2005. Whereas, it appeared that the assessee have removed the excisable goods viz., Branded Jewellery (hereinafter referred to as 'the excisable goods) from their factory premises under the cover of delivery challans without payment of duty from 1st March, 2005 to 30th September, 2005 to their retail showrooms situated at (1) Infantry Road and also at (2) Seven Star Hotel Leela Palace on Airport Road, Bangalore. It also appeared that the assessee were discharging the duty only on the part of the quantum of the excisable goods, which was sold from their retail showrooms under the cover of sale invoices. Thus, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no intention to evade payment of duty. Hence, no penalty could be imposed. The adjudicating authority, after due process of law, appropriated the amount of duty and interest paid by the appellant; and dropped the proceedings initiated by show cause notice for imposition of penalty under Section 11AC of the Central Excise Act, 1994, but imposed penalty under Rule 25 of the Central Excise Rules, 2002. Aggrieved by such an order, the assessee filed appeal before the Commissioner (Appeals) for setting aside the penalty imposed under Rule 25 of the Central Excise Rules, 2002. Revenue aggrieved by non-imposition of penalty on the assessee under provisions of Section 11AC of the Central Excise Act, 1944, also preferred appeal before the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under provisions of Section 11AC of the Central Excise Act, 1944. As regards the penalty imposed under Rule 25 of the Central Excise Rules, 2002, it is the submission that this penalty is also not imposable as there was no intention on the part of the assessee to evade payment of duty. 3.2 Ld. Counsel further submits that the assessee had sought clarification on the point as to whether the duty liability has to be discharged at the time of clearance or at the sales place, it is the submission that the Revenue authorities, vide letter dated 4-4-2005, informed the assessee that duty liability has to be made on provisional basis on all sales made during March 2005. He submits that sales generally take place from the showrooms situated away ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deputy Commissioner of Central Excise, we find that the assessee had sought clarifications on ten various points. Consequent to the said letter, there were several correspondences between the assessee and the Revenue as regards discharge of duty liability. It is seen from the records that the jurisdictional Asst. Commissioner vide letter dated 1-7-2005 gave clarification on eight points but has not clarified on two points which could have helped the assessee to discharge the duty liability on branded jewellery at the time of its clearance. We find that the assessee had sought for clarification as regards the provisions relating to approval/inspection of the branded jewellery, as per point No. 7 which is reproduced herein below : "As a trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e got themselves registered with the Department and within a reasonable time of 15 days, they vide letter dated 15-3-05 addressed to the jurisdictional Deputy Commissioner has sought clarifications on 10 points where they entertained certain doubts. Consequently, the jurisdictional Asst. Commissioner vide letter C. No. V/13/7/2005 Tech dated 19-4-05 had sought further information/details from the assessee, which were duly furnished vide assessee's letter dated 25-4-2005. Thereafter the jurisdictional Asst. Commissioner vide letter dated 1-7-2005 gave clarifications on 8 points and in respect of the remaining 2 points, the matter was referred to the chief Commissioner's office seeking clarification. It is also to be noted that basing on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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