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of <h1>CESTAT upholds tax demand & penalty due to no show by respondents. Key focus on notice adherence.</h1> The Appellate Tribunal CESTAT, New Delhi dismissed the appeal as the respondents failed to appear during the hearing, leading to the confirmation of ... Production capacity based duty Issues:1. Absence of respondents in the appeal hearing.2. Refixing annual capacity of production by the Commissioner of Central Excise.3. Abatement claim filed by the respondents.4. Confirmation of demand and penalty imposition by the Commissioner of Central Excise.5. Revenue's contention regarding the show cause notice and re-determination of annual capacity.6. Consideration of abatement claims and re-fixing annual capacity in the appeal.The judgment by the Appellate Tribunal CESTAT, New Delhi involved a case where the respondents failed to appear during the appeal hearing despite notice, citing the reason as 'factory closed.' The Commissioner of Central Excise had initially fixed the annual capacity of production of the furnace under the Compounded Levy Scheme. Subsequently, the Commissioner refixed the annual capacity based on the respondents' request and allowed the abatement claim, leading to a demand of Rs. 20,00,000/- and an equal penalty imposition. The Revenue argued that the show cause notice was issued based on the initial determination of annual production capacity, making the re-determination and abatement claim beyond the notice's scope.Upon review, the Tribunal noted that the Commissioner had considered and allowed the abatement claims filed by the respondents, which the Revenue did not contest in the appeal, indicating no irregularity in adjusting the abatement of duty. Additionally, the re-fixing of the annual capacity at the respondents' request was deemed lawful, with no challenge from the Revenue on its correctness. Consequently, the Tribunal found no merit in the appeal based on the facts and circumstances presented, leading to its dismissal.This judgment highlights the importance of adherence to show cause notice parameters in tax matters, emphasizing that decisions on re-fixing production capacity and abatement claims must align with the initial notice's scope to avoid procedural irregularities and ensure fair adjudication.
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