9911796707
Advanced Search 
TMI Blog2012 (7) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... eared on behalf of the Respondents. A show cause notice, being C.No. V(72)(15)55/APP/ADJ/JSR/ 07/7947 dated 31st September, 2007, was issued to the petitioner inter alia alleging that the petitioner had irregularly availed CENVAT Credit of ₹ 62,20,990/- during the period from July 2005 to December 2005, the benefit of which had been passed on to Tata Steel Ltd. By an order of adjudication dated 2nd January, 2009, the Commissioner of Excise imposed on the petitioner a penalty of ₹ 62,20,990/- under Rule 26(2) of the Central Excise Rules 2002 for willfully passing on benefit of credit of CENVAT to M/s. Tata Steel Ltd., Jamshedpur. Rule 26 of the Central Excise Rules, as it stood at the material time that is, during the period f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble benefit under the CENVAT Credit Rules, 2004 taken during the period prior to 1st March, 2007, as in the instant case. Being aggrieved by the imposition of penalty of ₹ 62,20,990/-, the petitioner filed an appeal before the Central Excise & Service Tax Appellate Tribunal, hereinbefore referred to as CESTAT and also filed a miscellaneous application for stay. By an order no.S-223-224/Kol/2011 dated 15th September, 2011, SESTAT directed the petitioner to make a pre-deposit of ₹ 10 lakhs within a period of eight weeks from the date of communication of the said order. The petitioner filed a miscellaneous application for variation of the aforesaid order, which was disposed of by the impugned order being M4 259-260/Kol/2012 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount to hardship, for the appellant would be prevented from utilizing those funds elsewhere even though he might have a gilt-edged case. Ex facie the penal provision of Rule 26(2) was not applicable to the petitioner. The said rule does not and cannot have retrospective operation. The impugned order as also the order dated 15th September, 2011 are set aside in so far as the said orders relate to the petitioner. The CESTAT shall hear out the appeal on merits without insisting on pre-deposit. The petitioner shall, however, deposit a sum of ₹ 5,000/- with the Commissioner of Excise within a week from the date of receipt of a certified copy of this order. With the above observations and directions, the writ petition is disposed of. U ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
