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TMI Blog2010 (9) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. E/271 of 2006 arises from order dated 30th November, 2005 passed by the Commissioner (Appeals), Chandigarh. By the impugned order the Commissioner (Appeals) has set aside the order of the original authority imposing penalty. The Additional Commissioner, Chandigarh, by his order dated 24-8-2005 had imposed penalty to the tune of Rs. 16,75,000/-, while confirming duty liability to the tune of Rs. 32,50,000/- and the interest thereon. 3. In Appeal No. E/385 of 2007 the appellants challenge the order dated 29th December, 2006 passed by the Commissioner (Appeals), Chandigarh, whereby the appeal filed by the Department against the order regarding penalty imposed by the adjudicating authority has been dismissed. The Additional Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause of action and, therefore, it was not permissible for the Department to initiate such action with such inordinate delay. Attention is drawn to the decision of the Larger bench of the Tribunal in the matter of CCE, Jaipur-I v. Genus Overseas Electronics Ltd., reported in 2003 (155) E.L.T. 541 (T-LB), and of the Division Bench of the Tribunal in the matter of GA Danieli India Ltd. v. CCE, Kolkata-VI, reported in 2009 (13) S.T.R. 213 = 2007 (219) E.L.T. 231 (Tri.) in support of the contention regarding tendering of duty under cheque within time. Reliance is also placed in the decision of the Punjab & Haryana High Court in the matter of Bhawani Castings (P) Ltd. v. CCE, Chandigarh, reported in 2010 (254) E.L.T. 247 (P&H), while contending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared on 16th December, 1999 whereas in relation to second fortnight of December, 1999 it was cleared on 8th January, 2000. 7. As far as payment of duty relating to January to March, 2000 is concerned, undoubtedly, there was a delay in tendering the duty amount. In respect of January, 2000 for the first fortnight, it was cleared on 14th February, 2000 and for the second fortnight, it was cleared on 23rd February, 2000. In respect of the February, 2000 for both the fortnights, it was cleared on 31st March, 2000. As regards the duty which was payable for March, 2000, it was cleared on 8th June, 28th June and 30th June, 2000. 8. Evidently, the records disclose that, as far as period prior to January, 2000 is concerned, though there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he part of the assessee. Being so, the respondents are justified in contending that there was no delay in tendering the duty by the respondents till the period of December, 1999. 9. As regards the period from January to March, 2000, undisputedly, there was delay in tendering cheques relating to the duty amount. However, it is the contention on behalf of the respondents that the proceedings for imposition of penalty on account of such delay in payment of duty were sought to be initiated only in the year 2004 which was an inordinate delay and, therefore, considering the decision of the Punjab & Haryana High Court in the matter of Bhawani Castings (P) Ltd. (supra), no fault can be found with the impugned order quashing the imposition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re required to be commenced within a period of five years. 11. In the case in hand, as already observed above, as far as period prior to January, 2000 is concerned, there was no delay in tendering the duty. However, from January to March, 2000 there was delay in tendering the duty. Show cause notice was issued on 16th August, 2004. Obviously, it was within the period of five years. Being so, the decision of the Punjab & Haryana High Court in the matter of Bhawani Castings (P) Ltd. (supra) cannot be of any help to the respondents to contend that the Department was not entitled to initiate action for imposition of penalty. 12. The Apex Court in the matter of Dharmendra Textile Processors (supra), has clearly held that, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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