2004 (3) TMI 307 - AT - Central Excise

Commissioner's Failure to Follow Order Leads to Setting Aside Duty Demand and Penalties

SUVIDHA ENGINEERS (INDIA) LTD. Versus COMMISSIONER OF C. EX., DELHI

SUVIDHA ENGINEERS (INDIA) LTD. Versus COMMISSIONER OF C. EX., DELHI - 2005 (179) E.L.T. 323 (Tri. - Del.) Issues:1. Commissioner not following directions given by the Tribunal in a previous order.2. Excisability of work carried out by the appellant.3. Imposition of Central Excise Duty and penalty.Analysis:Issue 1: Commissioner not following Tribunal's directionsThe appellant raised a complaint that the Commissioner, while passing the impugned order, did not adhere to the directions provided by the Tribunal in a previous Final Order. The Tribunal had specifically directed the Commissioner to re-examine the issue in light of relevant legal precedents, including judgments from the Apex Court and previous Tribunal decisions. The Tribunal found that the Commissioner indeed did not consider the ratio of the law laid down in the referred cases, leading to the setting aside of the impugned order and remanding the matter back to the Commissioner for fresh consideration.Issue 2: Excisability of work by the appellantThe appellant, an independent contractor engaged in installation and commissioning of heating, ventilation, and air-conditioning systems, carried out ducting/air-conditioning work for a hotel. The issue at hand was whether the work conducted by the appellant at the site would attract Central Excise Duty. The appellant contended that based on legal precedents, the work carried out should not be subject to excise duty. The Tribunal referenced relevant Supreme Court and Tribunal decisions to support the appellant's argument, ultimately concluding that the duty demand was not sustainable, and hence, the work conducted by the appellant was not considered 'excisable goods.'Issue 3: Imposition of Central Excise Duty and penaltyThe Commissioner proposed a Central Excise Duty amounting to a significant sum, along with a penalty. However, given the Tribunal's analysis and conclusion that the duty demand was not valid, the imposition of penalties on the appellant or its employee was deemed unwarranted. Consequently, the Tribunal set aside the impugned order and allowed the appeals, thereby relieving the appellant from the duty demand and penalties initially imposed.In summary, the judgment addressed the failure of the Commissioner to follow Tribunal directions, the excisability of the appellant's work, and the subsequent decision to set aside the duty demand and penalties imposed. The detailed analysis of legal precedents and the application of relevant case law formed the basis for the Tribunal's decision in favor of the appellant.