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2019 (6) TMI 5 - CESTAT CHENNAIClandestine manufacture and removal - PVC pipes - service of order - imposition of penalties - HELD THAT:- The discrepancies have not been properly and satisfactorily explained by the appellant. The adjudicating authority has picked up the sale value etc., from the books of the appellant as noted at paragraph-3 of the SCN. But, it is also a fact that upon being pointed out, the appellant admitted duty liability and paid the duty, but interest alone was paid late, on 03.09.2014, which is after the date of the OIO - impugned order upheld. Service of order - HELD THAT:- There is a finding that Shri V. Satish appeared before the Superintendent along with duly authorization letter which fact was not denied. Therefore, the contention of the Ld. DR that the order was served as per request on the authorized person is required to be accepted, but the fact remains that the same was never served on the individual who was also saddled with penalty. Penalty u/s 11AC - HELD THAT:- There are no allegation as to suppression, fraud, etc. either in the SCN while proposing the penalty or is there any discussion about the same while confirming, in the Order-in-Original. Hence, the above penalty is liable to be set aside - penalty under Section 11AC could be imposed only when the conditions mentioned in Section 11AC exists - there is absolutely nothing on record to suggest any suppression, fraud, etc. for which reason duty of excise was not paid or short paid, etc., and therefore, I have to only assume that the conditions are not satisfied in this case. Penalty under Rule 26 on Shri V. Satish, Incharge - HELD THAT:- Though penalty is imposed but the statutory requirements of serving the order on him is not complied with and thus, the said appellant has not been served with the reasons and the order whereby a demand is raised against him. Hence, even though an order imposing penalty remains on paper, in the absence of communication of the same, the order cannot be enforced - order cannot sustain. Appeal allowed in part.
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