Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2007 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (1) TMI 309 - CESTAT, MUMBAIPenalty - Imposition of in remand proceedings - Principle of Natural justice - HELD THAT:- In view of this imposition of penalty to the extent of Rs. 2,93,68,768/- appears to be totally irrational even if the same is treated to have been imposed under Rule 9(2), 173Q, 210 and 226 which were mentioned in the show cause notice also. As has been held in the above 12 show cause notices that this was a matter of interpretation where no penalty is warranted, we reduce the penalty from Rs. 2,93,68,768/- to Rs. 5 Lakhs only under Rule 173Q etc. As regards show cause notice dated 26-2-1996 the allegation is that the appellants have made a mis-declaration by declaring that the unprocessed tyre cord fabric used in the manufacture of processed tyre cord fabric was duty paid even though the imported tyre cord fabric had not borne any excise duty. The exemption was subject to the condition that duty @ Rs. 4/Kg. has been paid on the unprocessed fabric. This is not a case of payment of appropriate duty as is being made out by the appellants. On the contrary there is a specific requirement that the duty should have been paid on the unprocessed tyre cord fabric @ Rs. 4/Kg. and therefore the appellants were clearly not entitled the exemption and the imposition of penalty for mis-declaration cannot therefore to be faulted with. However this penalty cannot be more than Rs. 1 Lakh which was imposed in the first round of proceedings and the same cannot be enhanced in the remand proceedings. We accordingly reduce the penalty from Rs. 7.5 Lakhs to Rs. 1 Lakh only. As regards show cause notice dated 22-1-1998, 28-3-1998 and 14-7-1998 where penalty aggregating to Rs. 80 Lakhs have been imposed, we hold that since in the earlier cases no penalty has been imposed on the ground that the matter was of legal interpretation, the same holds goods for the present show cause notices also as the facts are no different. These penalties are accordingly set aside. As regards three show cause notices dated 29-11-2001, 3-7-2002 and 5-5-2000 we find that neither any notice of hearing has been issued in respect of them nor they were covered in the personal hearing. This has certainly resulted in the denial of principle of natural justice and we accordingly remand the matter back to the Commissioner with a direction that he should grant a personal hearing to the appellant to present their case and after hearing them to pass order as per law. The appeals are disposed of in above terms.
|