2009 (9) TMI 716 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT AHMEDABAD, consisting of Ms. Archana Wadhwa and Shri B.S.V. Murthy, JJ., reheard a matter based on the directions of the Hon'ble High Court. The case was remanded for reconsideration of the penalty amount in light of the law declared by the Hon'ble Supreme Court in the case of Union of India v. Dharamendra Textile Processors. The issue at hand pertained to the imposition of a penalty under Rule 96ZQ(5). The learned SDR highlighted a subsequent Supreme Court judgment in the case of Union of India v. Krishna Processors, which considered the earlier Dharamendra Textile Processors judgment. The Supreme Court observed that the challenge to the validity of Rule 96ZQ(5)(ii) was revived, and the matters were remanded to the respective High Courts for deciding on the rule's validity. Consequently, the imposition of a penalty under Rule 96ZQ(5)(ii) hinged on the outcome of a pending writ petition in various High Courts concerning the rule's legality. The Tribunal, therefore, remanded the matter to the Original Adjudicating Authority for a fresh decision post the High Court's ruling on the rule's validity. The appeal was disposed of accordingly, allowing the assessee to contest the case on its merits. The order was dictated and pronounced in court.