2006 (5) TMI 246 - AT - Central Excise

Tribunal Upholds Penalty Under Section 11AC, Emphasizes Importance of Accepting Remand Orders

The Tribunal upheld the penalty imposed under Section 11AC, rejecting the challenge against it. It emphasized the importance of accepting remand orders to ... Appeal - Remand - Finality of order Issues:Challenge against penalties imposed under Rule 173Q of the Central Excise Rules, 1944 and Section 11AC of the Central Excise Act.Analysis:The judgment pertains to a case where the appellants had previously challenged penalties imposed on them under Rule 173Q and Section 11AC. In the first round of litigation, the appellants' grievance was primarily regarding the imposition of penalties under Rule 173Q, which had not been imposed by the original authority but was proposed in the show-cause notice. The Tribunal's remand order focused on this specific issue, directing the Commissioner (Appeals) to maintain the penalty under Section 11AC while refraining from imposing any penalty under Rule 173Q. The appellants accepted this remand order, which led to the present round of litigation. The Tribunal noted that the appellants were estopped from challenging the penalty under Section 11AC since they had accepted the remand order. The argument that the Section 11AC penalty did not survive due to the remand order was rejected, as the grievance against this penalty was not pursued before the Tribunal during the remand order. The judgment emphasized that if the appellants disagreed with the remand order, they should have sought rectification instead of challenging the penalty at this stage.In conclusion, the Tribunal rejected the challenge against the penalty imposed under Section 11AC, thereby upholding the impugned order. The judgment highlights the importance of accepting and abiding by remand orders issued by the Tribunal, as failing to do so may preclude parties from raising certain grievances in subsequent proceedings.