2019 (2) TMI 207 - AT - Central Excise

Tribunal overturns penalties, cites notification, grants relief to appellants.

M/s Cri Ltd, Pramod J Kadecha, Rolex Tips, Reynolds Pens India P. Ltd, Dhwani Metal Distributor, Lugano Swiss Co. Pvt. Ltd, P Bhushan & Co., Samrik Watch Cases Versus C.C.E. & S.T., - Rajkot

The tribunal set aside the penalties imposed on the present appellants, emphasizing the significance of specific notifications and precedents. The appeals ... Imposition of penalty u/r 25 of Central Excise Rules, 2002 - the main duty demand was set aside - Held that:- Against the very same impugned order, the main appeal of M/s Shree Extrusion Ltd., wherein the entire duty demand was confirmed by the lower authority, was set aside by this Tribunal vide order dated 15.11.2018. The penalty imposed in the case of present appellants being consequential to the demand of duty which does not exist as of now, the penalty imposed under Rule 25 will also not survive - appeal allowed - decided in favor of appellant. Issues:1. Duty demand and penalties imposed on M/s Shree Extrusion Ltd.2. Consequential penalties on the present appellants.3. Consideration of previous tribunal judgments.4. Application of Notification No. 67/95-CE.Analysis:1. The case involved M/s Shree Extrusion Ltd., engaged in manufacturing excisable goods and carrying out job work for a principal. The duty demand and penalties were confirmed against them. However, a previous tribunal order dated 15.11.2018 set aside the demand against M/s Shree Extrusion Ltd., leading the present appellants to argue for the dismissal of penalties as they were consequential to the demand.2. The Revenue, represented by Sh. S.N. Gohil, relied on a previous tribunal judgment in the case of M/s Senor Metals Pvt. Ltd. vs. CCE & ST-Rajkot, where the assessee's appeal was dismissed. The Revenue urged the tribunal to consider this judgment in deciding the present appeals, highlighting the importance of bringing relevant precedents to the tribunal's attention.3. Upon careful consideration of submissions, the tribunal, comprising MR. RAMESH NAIR and MR. RAJU, noted that the duty demand against M/s Shree Extrusion Ltd. had been set aside in the previous order. The penalties imposed on the present appellants were deemed consequential to the demand, which no longer existed. The tribunal distinguished the case of M/s Senor Metals Pvt. Ltd. by pointing out that the benefit of Notification No. 67/95-CE, which exempts captively consumed goods, was extensively discussed and applied in the case of M/s Shree Extrusion Ltd., making the latter's decision more relevant and prevailing over the former.4. Ultimately, the tribunal set aside the penalties imposed on the present appellants, emphasizing the significance of specific notifications and precedents in determining the outcome of the case. The appeals were allowed, providing relief to the appellants. The judgment was pronounced in open court on 04.01.2019, with MR. RAMESH NAIR delivering the order.