9911796707
TMI BlogCESTAT, Larger Bench's decision in the case of Commissioner of Central Excise, Delhi IV v. ILPEA Paramount Pvt. Ltd. [2007 (213) E.L.T. 500 (Tri.-LB)]X X X X Extracts X X X X X X X X Extracts X X X X ..... n a situation when warranted has been engaging attention of the Board for quite some time. In several judgments/decisions rendered by various Tribunals/Court a view have been taken that the penalty imposable under Section 11AC of the Central Excise Act or Section 114A of the Customs Act mandate a maximum limit of penalty which is imposable as a consequence the adjudicating/appellate authorities are vested with the powers of discretion. In a recent judgment the Hon'ble Larger Bench of the CESTAT vide their Final Order No. 278/2007-CX dated 21st June, 2007 in the case of Commissioner of Central Excise, Delhi-IV v. ILPEA Paramount Pvt. Ltd., in remand proceedings (as directed by the Hon'ble Punjab Haryana High Court) have categorically hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in any manner." (Para 20) In the remand proceedings, the Tribunal not only restored the original order imposing the penalty equal to the amount of duty confirmed. It further held that prior to amendment (dated 12-5-2000) Section 11AC left no scope for any discretion as regards quantum of penalty imposable. It has been held by the Larger Bench of the Tribunal that - Para 14.1 ".....When the ingredients laid down in the proviso of Section 11A(1) for invoking the extended period of limitation and in Section 11AC for imposition of penalty are identical, in a case where these ingredients are satisfied for invoking the extended period of limitation, that very finding will enure for the purpose of imposing penalty under Section 11AC. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensive, holistic and detailed manner, setting to rest the controversies as created by a host of decisions on the subject matter creating all round confusion in the field. It is proposed that the aforesaid decision could be kept in mind while deciding the question of imposition of penalty under Section 11AC of the Central Excise Act or Section 114A of the Customs Act as it lays to rest the disparity of practices in the field formations arising out of two diametrically opposite viewpoints as held by various judicial bodies and for the guidance and action of the field officers in similar circumstances. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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