2013 (3) TMI 256 - AT - Central Excise

Tribunal Remands Case for Individual Duty Determination & Penalty Assessment

SHRI HIREN R KAPADIA & Others Versus COMMISSIONER OF CENTRAL EXCISE, RAIGAD

The Tribunal waived the pre-deposit requirement and remanded the case to the adjudicating authority for individual duty liability determination and ... Fraudulent rebate of Central Excise duty demanded - joint recovery orders - Held that:- As decided in Commissioner Versus Mahesh Harlalka [2013 (3) TMI 231 - GUJARAT HIGH COURT] recovery of duty cannot be held jointly and individual duty liability is to be segregated separately against each individual. Thus the requirement of pre-deposit of impugned demands waived and the matter remanded back to the adjudicating authority for determination of individual demand and thereafter penalty accordingly. Issues:Challenge to impugned order seeking waiver of pre-deposit of duty, interest, and penalties confirmed against multiple parties jointly.Analysis:1. Joint Recovery of Duty:The appellants contested the impugned order confirming the demand for fraudulent rebate of Central Excise duty, amounting to Rs.1,33,52,927, to be recovered jointly from several entities and individuals. However, the Tribunal referred to a previous case involving Shri Manohar Mali and Shri Mahesh Harlalka, where the order for joint recovery was set aside by the Tribunal and subsequently confirmed by the Gujarat High Court. Following this precedent, the Tribunal held that individual duty liability must be segregated separately against each individual, as established by the decision of the Gujarat High Court. Consequently, the Tribunal waived the pre-deposit requirement and remanded the matter to the adjudicating authority for the determination of individual demands and penalties.2. Disposition and Conclusion:The Tribunal clarified that its decision to waive the pre-deposit and remand the matter did not imply any findings on the merits of the case. The stay applications and appeals were disposed of accordingly, with the matter being remanded for individual demand determination and penalty assessment. This comprehensive analysis underscores the importance of individual liability determination in cases of fraudulent rebate of Central Excise duty, as established by the legal precedent set by the Gujarat High Court. The Tribunal's decision ensures a fair and just approach to resolving the issue of joint recovery of duty among multiple parties involved in the case.