Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 568 - AT - Central ExciseDuty exemption under Notification No. 50/2003-C.E. denied - Personal penalty on director - extented period of limitation invoked - Held that:- As decided in Indian Aluminium Co. Ltd. v. Thane Municipal Corporation (1991 (9) TMI 162 - SUPREME COURT OF INDIA) that when the exemption notification is subject to observance of some condition and non-observance of that condition is likely to facilitate commission of fraud and introduce administrative inconveniences, the exemption would not be available if the condition has not been fulfilled and such condition cannot be treated as mere a procedural condition. Unless the officers have advance intimation about the assessee’s intention to avail of this exemption the correctness or otherwise of the claim for exemption cannot be checked. Condition (1) regarding filing of declaration as prescribed in the para 1 of the notification is a condition meant to prevent misuse of this exemption and its non-observance would only facilitate the misuse of this notification and cause administrative inconveniences. Therefore non-filing of declaration shall result in denial of exemption. As regards question of limitation, it is not disputed that the appellant before availing of the exemption had neither applied for registration nor intimated the department about nature of activity therefore extended period under proviso to Section 11A has been correctly invoked. Since Shri Shantanu Sangi, Director of the appellant-company was actively involved in the day to day activity of the appellant-company penalty on him under Rule 26 has been correctly imposed. This is not the case for total waiver from requirement of pre-deposit thus appellant-company directed to deposit entire amount of duty demand confirmed against them within eight weeks from the date of this order. Appellant Shri Shantanu Sangi, Director of the appellant-company is directed to deposit an amount of Rs. 1 lakh within eight weeks from the date of this order.
|