9911796707
TMI Blog2003 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... l in Sections 11AC and 11AB of the Central Excise Act, 1944 is to be read with "misstatement" only and no with "suppression of facts"? (ii) "Whether the CEGAT was right in waiving the Mandatory penalty under Section 11AC of the Central Excise Act, 1944 and the levy of interest under Section 11AB of the Central Excise Act, 1944 in the instant case when there is clear cut suppression of facts ('d' factor) on the part of the party?" 2.Respondent No. 1 M/s. D.K. Alloy (Private) Limited, Ludhiana is engaged in the manufacture of hot re-rolled products of non-alloy steel which is chargeable to duty in terms of Section 3A of the 1944, Act as per the Annual Production Capacity (hereinafter described as 'APC') of the unit. Respondent No. 1 filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mandatory penalty under Section 11AC of the 1944, Act read with Rules 9(2) and 173Q of the 1944, Rules. 5.After hearing the representative of respondent No. 1, the adjudicating authority passed order dated 27-10-1999 vide which it confirmed the demand of Rs. 5,14,585/-. The adjudicating authority also levied interest at the rate of 12% and imposed penalty of Rs. 5,15,000/-. The Commissioner (Appeals) allowed the appeal filed by respondent. No. 1 vide his order dated 12-5-2000 and quashed the levy of interest and penalty. He held that respondent No. 1 had discharged its duty liability and there was no justification to penalise it by charging interest and penalty. 6.Feeling aggrieved by the appellate order, the petitioner filed an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n our opinion, respondent No. 1 cannot be held guilty of misdeclaration of 'd' factor of the APC of its mill. The argument of Shri Govind Goel that the admission made by Shri Tarsem Lal that 'd' factor had not been correctly declared at the initial stage due to misunderstanding should be treated as deliberate misdeclaration is wholly untenable. In our view, the failure of respondent No. 1 to correctly disclose 'd' factor due to misunderstanding of calculation cannot, by any stretch of imagination, be treated as deliberate misdeclaration justifying invoking of the extended period of limitation under Section 11A of the 1944, Act and the Commissioner (Appeals) and the Tribunal did not commit any error by setting aside the levy of interest and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
