Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2010 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (11) TMI 98 - PUNJAB AND HARYANA HIGH COURTPenalty - For evasion of Duty - Payment of excise duty by utilization of CENVAT Credit as provided under rule 3(4) of the CENVAT Credit Rules, 2004, is ordered to be stopped with effect from 27.8.10 to 28.2.11. During this period, they are required to pay excise duty without utilizing CENVAT Credit. - Held that: - As regards the validity of the impugned provisions, the matter has been considered by this Court on 5.10.2010 in CWP No. 16796 of 2010 (M/s Saviton Metplast (P) Ltd. v. Union of India and others), wherein it was held that legislature power to levy tax included incidental power to check evasion. Whether or not existing provisions for recovery of duty, interest and penalty were sufficient to deal with the evasion was a matter which normally could not be interfered with in exercise of power of judicial review. However for exercise of such a drastic power just, fair and reasonable procedure was the requirement of Article 21 of the Constitution which includes compliance with natural justice unless such requirement is expressly or impliedly excluded. It was further held that the power to take decision was conferred on the representative of the Board without providing any opportunity or consideration of view point of the assessee. In absence of express exclusion, it was held that there was no ground to impliedly exclude opportunity of hearing to the assessee before adverse recommendation by the Chief Commissioner was accepted. To make such opportunity meaningful, a copy of the recommendation of the Chief Commissioner is required to be furnished to the assessee. The writ petition is disposed of accordingly
|