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Commissioner of Central Excise Delhi-II Versus Ganpati Rollings Pvt. Ltd. & Anr.

2016 (6) TMI 157 - DELHI HIGH COURT

Confiscation in lieu of redemption fine and imposition of penalties - possession of excess stock of copper rods and copper ingots - not accounted for in statutory records - Held that:- when this Court dismissed the appeal against the decision of the Full Bench of the CESTAT in Commissioner of Central Excise, Delhi v. Ganpati Rolling Pvt. Ltd. [2014 (6) TMI 234 - CESTAT NEW DELHI] as withdrawn, there was obviously no occasion to consider any of the decisions of the Gujarat High Court in the case .....

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5-2016 - S. MURALIDHAR & VIBHU BAKHRU JJ. For the Appellant: Mr. Rahul Kaushik, Senior Standing counsel. For the Respondents: Mr. Abhishek Anand, Mr. M.P. Devnath and Mr. Yogendra Aldak, Advocates. O R D E R Dr. S. Muralidhar, J.: CM No. 21897/2016 (for exemption) 1. Exemption allowed subject to all just exceptions. CEAC 7/2016 & CM No. 21896/2016 (for stay) 2. The challenge in this appeal is to .....

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against the Respondents, as set out in the Show Cause Notice ('SCN') dated 16th November 2007, is that in a search conducted in their premises on 27th June 2007 they were found in possession of the excess stock of copper rods and copper ingots which had not been accounted for in their statutory records. They were asked to show cause why they should not be penalised for having contravened the provisions of the Cenvat Credit Rules, 2004 ('Cenvat Rules') read with Central Excise Ru .....

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ufacturer, registered person of a warehouse or an importer who issues an invoice on which CENVAT credit can be taken or a registered dealer, - (a) removes any excisable goods in contravention of any of the provisions of these rules or the notifications issued under these rules; or (b) does not account for any excisable goods produced or Manufactured or stored by him; or (c) engages in the manufacture, production or storage of any excisable goods without having ap .....

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exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to in clause (a) or clause (b) or clause (c) or clause (d) has been committed, or two thousand rupees, whichever is greater. (2) An order under sub-rule (1) shall be issued by the Central Excise Officer, following the principles of natural justice. 6. In the impugned order, the CESTAT has held that since there were no findings by the adjudicating authority as regards vio .....

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decision of the High Court of Jharkhand in Dayal Alloy & Steel Castings v. Commissioner of Central Excise, Ranchi 2014 (305) ELT 12 (Jhar.) and urges that the CESTAT erred in placing a restrictive interpretation on Rule 25 of the CE Rules. He also pointed out that against the Full Bench decision of the CESTAT in Commissioner of Central Excise, Delhi v. Ganpati Rolling Pvt. Ltd. (supra), an appeal was filed in this Court which was dismissed as withdrawn on 24th February 2015 in CEAC No. 59-6 .....

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ons of the Gujarat High Court in Commissioner of Central Excise & Customs v. Saurashtra Cement Ltd. 2010 (260) ELT 71 (Guj.) and Prince Multiplast Pvt. Ltd. v. Union of India 2012 (276) ELT 48 (Guj.) to urge that the CESTAT's interpretation of Rule 25 of the CE Rules in the instant case merits acceptance. 9. The opening words of Rule 25 is Subject to the provisions of Section 11AC of the CE Act and not an non-obstante clause which would have begun with the words Notwithstandin .....

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ourt in Saurashtra Cement Ltd. (supra) wherein para 17 it was observed as under: 17. It is also to be borne in mind that Rule 25 starts with the word Subject to the provisions of Section 11AC..... . Section 11AC of the Central Excise Act deals with penalty for short levy or non-levy of duty in certain cases. It says that where any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded by reasons of fraud, collusion or any wilful misst .....

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granted by reasons of fraud, collusion or any wilful misstatement or suppression of facts. If these ingredients are not present, penalty under Section 11AC cannot be levied. Since Rule 25 can be invoked subject to the provisions of Section 11 AC of the Act, as a natural corollary, the ingredients mentioned in Section 11AC are also required to be considered while determining the question of levying of penalty under Rule 25 of the Central Excise Rules. 10. In other words, if the ingred .....

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e Act. 11. In Prince Multiplast Pvt. Ltd. (supra) the Gujarat High Court was considering Rule173Q of the Central Excise Rules 1944 (CE Rules 1944) which begins with the expression subject to the provisions contained in Section 11AC of the Act and sub-rule (4) of Rule 57-I and sub-rule (6) of Rule 57-U . After referring to the judgment of the Supreme Court in S.N. Chandrashekhar v. State of Karnataka (2006) 3 SCC 208 and Ashok Leyland v. State of Tamil Nadu (2004) 3 SCC 1, the Gujarat .....

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