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Showing 181 to 200 of 740 Records
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2008 (4) TMI 654
Demand and penalty - Clandestine removal - Penalty on Director - Held that: - in view of the clear cut admission of the Director himself and the Manager, the payment of duty before issue of show cause notice is sufficient evidence. It is also noted that the Director’s statement was recorded after nearly one year of the recovery of receipts which again goes in favour of the revenue. Therefore, I find no reason to interfere with the confirmation of demand and interest thereon, if any liable.
I am unable to say agree that the Director has not physically dealt with the goods when clearance had been made without payment of duty with his knowledge. Therefore, the liability to penalty is sustained - having regard to the facts and circumstances of the case, the total amount of penalty on the Director is reduced to ₹ 10,000/- from ₹ 25,000/-.
Appeal allowed - decided partly in favor of appellant.
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2008 (4) TMI 653
Issues Involved:
1. Interpretation of Rule 173H of Central Excise Rules, 1944 regarding the reconditioning of rejected finished goods.
2. Confiscation of defective chairs returned by buyers and imposition of penalties based on the process of grinding, pulverizing, and molding.
3. Appeal against the Commissioner (Appeals) order by the revenue.
Interpretation of Rule 173H:
The case involved a dispute over the eligibility of a manufacturer to receive rejected finished goods under Rule 173H of the Central Excise Rules, 1944. The Central Excise officers found 1726 pieces of defective chairs in the factory of the respondents, which were returned by buyers as rejected goods. The revenue contended that as the rejected goods needed to undergo processes like grinding, pulverizing, and molding, the manufacturer was not entitled to receive them under Rule 173H. The Commissioner (Appeals) observed that the appellant was required to carry out the process of grinding, melting, and molding before the goods could be cleared again. However, the Commissioner relied on a previous decision of the Tribunal in the case of Baijnath Plastic Products to support the appellant's contention that the process of remaking defective plastic products was covered by Rule 173H.
Confiscation and Penalties:
The adjudicating authority had confiscated the returned rejected goods and imposed penalties on the respondents, citing that the process of grinding, pulverizing, and remolding was not covered under the reconditioning process as per Rule 173H. The Commissioner (Appeals) disagreed with this assessment and overturned the order, highlighting that the process of remaking defective plastic products fell within the ambit of Rule 173H. By referencing the Tribunal's decision in the Baijnath Plastic Products case, the Commissioner concluded that the appellant's case aligned with the interpretation provided in the earlier ruling. Consequently, the appeals filed by the revenue were rejected based on the consistency with the Tribunal's precedent.
Appeal Against Commissioner (Appeals) Order:
The revenue, being dissatisfied with the Commissioner (Appeals) order, filed an appeal before the Appellate Tribunal CESTAT, Ahmedabad. Upon reviewing the grounds of appeal, the Tribunal found no justifiable reason to deviate from the earlier decision in the Baijnath Plastic Products case. The Tribunal upheld the Commissioner's interpretation and application of Rule 173H, emphasizing the importance of consistency with established legal precedents. As a result, the appeals filed by the revenue were rejected by the Tribunal, affirming the decision of the Commissioner (Appeals) in favor of the respondents.
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2008 (4) TMI 652
Issues:
1. Appeal against order passed by Commissioner (Appeals) by Revenue.
2. Confiscation of seized goods and imposition of personal penalty.
3. Application of KVSS 1998 for settlement.
4. Competent authority's issuance of immunity certificate.
5. Interpretation of KVSS provisions regarding show cause notice and seizure.
Analysis:
1. The appeal was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the confiscation of seized goods and imposition of personal penalty. The Commissioner (Appeals) set aside the show cause notice based on the application of KVSS 1998 for settlement. The appellant contended that they had filed a declaration under KVSS 1998 and obtained a certificate regarding settlement, thus arguing against the confiscation and penalty.
2. The Commissioner (Appeals) carefully reviewed the case records, submissions, and grounds of appeal. It was noted that the appellant had applied for immunity against the show cause notice pending adjudication, and the competent authority had issued a certificate granting immunity, referencing the specific show cause notice in question. The Commissioner (Appeals) found that the issue had been settled by the competent authority under KVSS 1998, and therefore, no further action was necessary. The Commissioner (Appeals) emphasized that the appellant had fulfilled the required duty, leading to the decision to set aside the lower authority's order.
3. The Commissioner (Appeals) highlighted that the show cause notice considered under KVSS 1998 included the aspect of seizure, indicating that the settlement under the scheme encompassed such issues. Consequently, the Revenue's appeal was deemed to lack merit, and it was rejected accordingly.
4. The judgment concluded by stating that there was no infirmity in the Commissioner (Appeals)'s decision, as the application of KVSS 1998 and the issuance of the immunity certificate were found to be valid and conclusive in settling the matter. The decision to reject the Revenue's appeal was upheld, emphasizing the settlement under KVSS 1998 as the basis for the ruling.
This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the application of KVSS 1998 for settlement, and the competent authority's role in granting immunity in the context of confiscation and penalties related to seized goods.
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2008 (4) TMI 651
Demand - Limitation - Invocation of extended period of limitation - Held that: - in view of the clear finding of absence of male fide, set aside the impugned order and allow the appeal on the ground of limitation also, without going to the merits of the case.
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2008 (4) TMI 650
The Appellate Tribunal CESTAT, Ahmedabad rejected the revenue's appeal regarding the Commissioner's decision not to confiscate seized goods and tempo due to their unavailability. The Tribunal found no issue with the Commissioner's decision. The appeals were rejected.
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2008 (4) TMI 649
Issues:
Refund claim rejection under Rule 173L due to delay in returning goods after one year.
Analysis:
The judgment revolves around the rejection of a refund claim under Rule 173L due to the delay in returning goods after one year. The appellants sought to appeal the decision of the Commissioner, who denied the refund claim amounting to Rs. 64,973. The Commissioner held that the power to condone the delay in returning goods after one year lies with the Commissioner of Central Excise. The Commissioner of Appeals emphasized that there was no provision empowering them to condone such delay, and the appellants should have approached the jurisdictional Commissioner for condonation of delay, which they failed to do. Consequently, the denial of the refund claim was deemed sustainable as per the order of the adjudicating authority.
The appellate tribunal, after reviewing the Commissioner's order, found no fault in the decision. It was acknowledged that the appellants did not seek condonation of the delay from the Commissioner, rendering the rejection of the refund claim under Rule 173L justified. The tribunal concurred with the appellate authority's stance, leading to the dismissal of the present appeal. The judgment underscores the importance of adhering to procedural requirements, such as seeking condonation of delays as prescribed by law, to validate refund claims under relevant provisions. The case serves as a reminder of the significance of compliance with statutory procedures and the implications of failing to fulfill such obligations in the context of excise law.
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2008 (4) TMI 648
Issues involved: Delay in filing appeal, condonation of delay, unintentional delay, failure to explain delay, dismissal of appeal.
In this case, the Appellant filed an appeal with a delay of 180 days and also applied for condonation of delay, citing that the delay was due to the Dealing Assistant leaving the job without informing the management about the impugned order. The Appellant claimed the delay was unintentional and that they would suffer if the appeal was not admitted.
To verify the Appellant's claims, the Revenue submitted that the Appellant admitted receiving the order but failed to specify the date of service in the affidavit. The Revenue argued that the delay was not adequately explained, and the appeal should be dismissed.
The Appellant's representative contended that the delay was solely due to the actions of the former Dealing Assistant, who kept the Appellant unaware of the order, leading to the delay in filing the appeal.
The Revenue strongly opposed the Appellant's contentions, stating that the plea for condonation of delay was baseless and that the Appellant's approach to the law should not be sanctioned.
After hearing both sides and examining the facts, the Tribunal found that the Appellant was aware of the order since December 2006 but failed to provide a valid reason for the delay in filing the appeal. As there was no clear explanation for the delay, the Tribunal dismissed the application for condonation of delay, as well as the Stay Petition and the Appeal itself.
In conclusion, the Application for condonation of delay, Stay Petition, and Appeal were all dismissed by the Tribunal due to the lack of a valid explanation for the delay in filing the appeal.
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2008 (4) TMI 647
Testing - Re-test - Request by aggrieved person - Held that: - In absence of report on retest, the matter cannot be finalized - It is undisputed that appellants had requested for re-test of the remnant sample. Without expressing any opinion on the merits, we are of the view that the appellant’s request for re-testing the sample should have been considered, before passing the impugned order - appeal allowed by way of remand.
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2008 (4) TMI 646
Issues: Classification of electric control panel under Heading 8534 or 8537, Time limitation for raising demand
In this case, the appellant, engaged in manufacturing dairy machinery, faced a dispute regarding the classification of electric control panels. The appellant argued that when these panels were supplied along with cleaning in place units/systems (C.I.P.) as part of the purchase order, they should be classified under Heading 8534, which covers C.I.P. The duty was being paid under Heading 8537 when the control panels were cleared separately, as it specifically covers control panels. The duty demand was raised beyond the normal period of limitation, which was challenged by the appellant. The appellant had mentioned the control panels as part of C.I.P. in the duty paying documents and RT-12 return, which were assessed by the Central Excise officer. The Tribunal noted that the entire case of the Revenue was based on facts already disclosed to them, and the demand raised after the limitation period was considered a 'change of view' rather than a case of suppression or intention to evade duty. Therefore, the demand raised beyond the limitation period was held to be barred by limitation, and the appeal was allowed on this ground alone.
The Tribunal emphasized that the duty demand raised for the period of February and March '94 was issued beyond the normal period of limitation, which was a crucial aspect of the case. Despite the appellant clearing the control panels with proper documentation mentioning them as part of C.I.P., the Revenue's argument that the complete description was not provided did not hold weight. The Tribunal highlighted that the Revenue was aware of the facts as they were reflected in the documents submitted by the appellant and assessed by the Central Excise officer. The Tribunal agreed with the appellant's contention that the demand raised after the limitation period was unjustified, as it was not based on any new information or evasion of duty. This analysis led the Tribunal to conclude that the demand raised beyond the limitation period lacked legal standing and was therefore barred by limitation, resulting in the allowance of the appeal solely on this basis.
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2008 (4) TMI 645
Issues involved: Interpretation of Cenvat credit rules regarding reversal of credit on capital goods removed as scrap.
The judgment by the Appellate Tribunal CESTAT, Ahmedabad dealt with the issue of availing Cenvat credit on capital goods and the requirement to reverse the credit when the goods are cleared as scrap. The appellants had utilized the capital goods for 7 to 8 years before clearing them as scrap and paid appropriate duty on the transaction value. However, the Revenue contended that the total Modvat credit initially availed should be reversed. The original adjudicating authority and the Commissioner (Appeals) upheld this view, leading to the present appeal.
In a similar proceeding for a different period, the Commissioner (Appeals) had previously allowed the appeal of the appellants. This decision was confirmed by the Tribunal when the Revenue's appeal was rejected. The Tribunal's earlier order highlighted that the duty paid on capital goods should be determined after allowing depreciation, and the duty paid need not be equal to the amount of credit availed u/s Rule 3(4) of the Cenvat Credit Rules, 2002. Citing precedents, including the cases of Madura Coats Pvt. Ltd. and Salona Cotspin Ltd., the Tribunal emphasized that the reversal of credit is required only when capital goods are removed "as such" and not when they are removed after use. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief to the appellant.
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2008 (4) TMI 644
Issues:
The appeal challenges the disallowance of Cenvat credit on capital goods u/s Rule 4(3) and the Revenue's objection regarding the utilization of the Cenvat credit.
Cenvat Credit on Capital Goods (Rule 4(3)):
The appeal contests the disallowance of Cenvat credit amounting to Rs. 28,40,122/- on capital goods, specifically moulds and dies, imported by M/s. Hindustan Lever Limited (HLL) and utilized by the appellants for manufacturing toothbrushes. The Revenue's basis for disallowance is the interpretation of Rule 4(3), which they argue restricts Cenvat credit to capital goods supplied under lease, hire purchase, or loan agreement by a financing company. However, the Tribunal finds that the Revenue's interpretation is flawed, citing the precedent set in CCE, Pune-I v. Kalyani Seamless Tubes Ltd. The Tribunal asserts that the rule does not exclude situations where capital goods are provided by entities like HLL for manufacturing purposes. Additionally, the Tribunal references the decision in Urastan Metal Industries Pvt. Ltd. to support the validity of the endorsement of the bill of entry in this case.
Utilization of Cenvat Credit:
The Revenue also raised an objection regarding the appellants reimbursing a percentage of the Cenvat credit instead of utilizing it towards the payment of Central Excise duty. However, the Tribunal emphasizes that the key issue is the eligibility of the appellants for the Cenvat credit, not the specific utilization of the credit. The Tribunal clarifies that separate transactions related to the payment for machinery usage or cost do not impact the admissibility of Cenvat credit. Once the eligibility for Cenvat credit is established, other objections raised by the Revenue become irrelevant. Consequently, the appeal is allowed in favor of the appellants, granting them consequential relief.
(Separate Judgment by Judge):
The judgment was pronounced in court by B.S.V. Murthy, Member (T).
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2008 (4) TMI 643
Issues involved: Imposition of redemption fine in lieu of confiscation due to misdeclaration of goods exported leading to more claim of drawback.
Imposition of redemption fine: The case involved misdeclaration of goods exported with the intention to avail more drawback. The Assistant Commissioner's Order-in-Original dated 29-3-2006 denied the irregularly claimed drawback of Rs. 33,882/- and imposed a penalty of equal sum on the exporter. However, as the goods were not available for confiscation, no redemption fine was imposed.
Appeal process: The appellants, aggrieved by the Order-in-Original, filed an appeal before the Commissioner (Appeals), who dismissed the appeal in an Order-in-Appeal dated 19-9-2006. Subsequently, a Revision Application was filed before the Government of India, which was also dismissed on 12-7-2007. The Department then filed an appeal before the Commissioner (Appeals) for imposition of the redemption fine, leading to an Order-in-Appeal dated 27-8-2007 for remand.
Jurisdiction issue: The Tribunal found the appeal filed by the appellants not maintainable due to lack of jurisdiction. The cause of action, relating to misdeclaration of goods exported and consequent disallowance of drawback claim, penalty, and redemption fine, falls under the jurisdiction of the Government of India. The Tribunal emphasized that penalty provisions cannot be separated from the core issue of drawback claim, and hence, the appeal was dismissed on the ground of lack of jurisdiction.
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2008 (4) TMI 642
The Appellate Tribunal CESTAT, Ahmedabad ruled in a case where plastic storage tanks were confiscated from the appellant's premises. The appellant, a dealer, was not aware of the manufacturer's incorrect claim for small-scale exemption. The tribunal found no collusion by the appellant and allowed the appeal, granting relief.
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2008 (4) TMI 641
Issues: Challenge against Order-in-appeal No. SVS/NGP-C-ST/2007 regarding input stage credit on security services used in residential colony.
Analysis:
- The appeal was made against Order-in-appeal No. SVS/NGP-C-ST/2007, dated 23-7-2007, concerning input stage credit on security services used in the residential colony. The Tribunal heard both sides and examined the records.
- It was observed that the order of the Commissioner (Appeals) was identical to a previous order challenged before the Tribunal by the same appellant. The Commissioner's order lacked clarity, did not address the appellant's defense, and provided no reasons for rejecting the appeal. Therefore, the Tribunal decided to set aside the order and remand the matter back to the Commissioner (Appeals) for reconsideration.
- The Tribunal referred to a previous final order and concluded that the current order needed to be remanded for de novo proceedings. Consequently, the impugned order was set aside, and the appeal was allowed by way of remand for further consideration by the Commissioner (Appeals).
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2008 (4) TMI 640
The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal by M/s. Prime Indus. Valves Mfg. Co., stating they were not required to pay duty and the deposit made by them would be refunded. The penalty of Rs. 1 lakh imposed on the respondent was set aside.
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2008 (4) TMI 639
Issues:
1. Central Excise duty confirmation and penalty reduction.
2. Customs duty confirmation and penalty imposition.
Central Excise Duty Confirmation and Penalty Reduction:
The case involved four appeals, two under the Excise Act and two under the Customs Act, arising from the same impugned order. The appellant, a 100% EOU, faced proceedings due to a shortage of finished products found during a factory visit. The show cause notice demanded Central Excise duty and Customs duty on duty-free imported raw material used in manufacturing the short found goods. The impugned order confirmed the demands and imposed a 100% penalty. The appellant did not contest the Central Excise duty but requested a penalty reduction in line with a Delhi High Court case. Consequently, the Central Excise duty was confirmed, and the penalty was reduced to 25% of the amount.
Customs Duty Confirmation and Penalty Imposition:
Regarding the confirmation of Customs duty, it was noted that since the entire Central Excise duty had been paid, the demand for Customs duty and penalty under the Customs Act was not sustainable. The Tribunal referred to several decisions to support this position. Following the legal precedent set in those cases, the confirmed Customs duty and penalty were set aside. Additionally, the penalties imposed on an individual were entirely set aside. Ultimately, all the appeals were disposed of based on the above decisions.
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2008 (4) TMI 638
The Appellate Tribunal CESTAT, Ahmedabad allowed the appellant's Modvat credit claim for capital goods acquired under a lease agreement, stating that the rules do not restrict credit based on the lessor being a financing company as per RBI rules. The tribunal found no reason to direct the appellant to deposit any duty and unconditionally allowed the stay petition.
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2008 (4) TMI 637
Issues:
1. Admissibility of Cenvat credit on central excise duty paid on inputs used in water treatment.
2. Interpretation of show cause notice and order in appeal regarding the eligibility for Cenvat credit.
Analysis:
1. The appeal challenged the decision regarding the admissibility of Cenvat credit on central excise duty paid on inputs used in water treatment for various activities. The Commissioner (Appeals) ruled that the credit is not available for non-excisable activities, and only the proportionate quantity of water utilized by the clinker unit is eligible for credit. However, the Commissioner did not specify the applicable proportion. The appellant argued that the Commissioner exceeded the show cause notice's scope and disputed the assertion that treated water was supplied to both excisable and non-excisable activities. The show cause notice mentioned the use of inputs for manufacturing mineral water outside the registered premises, exempt from duty, making the appellants ineligible for Cenvat credit. The Tribunal agreed with the appellant's contention that the Commissioner's order went beyond the show cause notice and original order, necessitating a remand to reexamine the issue based solely on the facts raised in the notice and original order.
2. The Tribunal emphasized the importance of aligning decisions with the specifics outlined in show cause notices and original orders to ensure procedural fairness and legal accuracy. By remanding the case for a reevaluation based on the initial facts presented, the Tribunal aimed to address any discrepancies in the interpretation of eligibility for Cenvat credit, particularly concerning the use of inputs for excisable and non-excisable activities. This detailed analysis underscores the significance of adherence to procedural guidelines and the need for precise determination of credit eligibility based on the specific circumstances outlined in the relevant legal documents.
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2008 (4) TMI 636
Demand - waiver of pre-deposit - Held that: - It is not on record as to why permission was withheld and what was the reason for the revenue to direct the appellant to further await permission instead of granting the same. There is no explanation from the revenue as to why a period of almost 2 years was considered to be insufficient for the revenue authorities for grant of permission to destroy admittedly, the expired medicines. In any case, we find that there is no dispute as regards the destruction, which was carried out in the presence of the Food and Drugs Authorities and under their directions, the appellant cannot be held liable for delay on the part of the revenue’s action - appeal allowed.
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2008 (4) TMI 635
The Appellate Tribunal CESTAT, Ahmedabad rejected the Revenue's appeal against the Commissioner (Appeals) order. The appellate authority agreed that free samples of sugar-free products are not subject to duty as they are not sold and do not require an MRP. The assessment under Section 4 was deemed correct.
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