TaxTMI 
TaxTMI 
2010 (3) TMI 384
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....essee for the delayed payment of duty, when the assessee opted for availment of exemption under GOI Notification No. 2/2001-C.E. (N.T.), dated 27-1-2001 under the provisions of Central Excise Act, 1944? 2. Whether penalty can be imposed under the provisions of Central Excise Act, 1944 for not fulfilling the conditions of the aforesaid notification by the assessee? 2. The assessee is engaged in the manufacturing of motor vehicles. Under the Notification No. 2/2001-C.E. (N.T.), dated 27-1-2001, assessee was exempted from payment of excise duty in respect of excisable goods cleared by the assessee to NGOs, Trusts, etc. in order to provide relief and rehabilitation to the victims of Gujarat earthquake. The notification further reads that ....
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....an appeal before the Commissioner of Central Excise (Appeals-II), Bangalore which appeal also came to be rejected concurring with the views of the original Authority. Being aggrieved by the concurrent findings, assessee filed second appeal before CESTAT. The tribunal, considering the grievance of the parties, came to the conclusion that the proceedings were barred by time and that the appellant could not levy interest or penalty and set aside the orders passed by both the authorities. Being aggrieved by the same, present appeal is filed by the Revenue. 5. Mr. Shashikantha, learned counsel appearing for the revenue contends that since the respondent-assessee had failed to pay excise duty payable before removal of the vehicle, as there was....
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....strict Magistrate to the effect that the vehicles removed by the assessee were put to use as a relief vehicles to the victims affected under the earthquake. It is also not in dispute that utilization certificate has been granted in respect of most of the vehicles sent to Gujarat except the vehicles involved in the case on hand. It is also not in dispute that the assessee paid duty in the year 2001, since assessee could not get utilization certificate from the District Magistrate. Four years later a show cause notice has been issued to levy interest and penalty. 8. In the background of the above facts, what is required to be considered by us in this case is that whether interest and penalty can be collected by the Revenue from the assesse....
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....payable. Explanation 2 : Where the duty determined to be payable is increased or further increased by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the date of such determination shall be, - (a) for the amount of duty first determined to be payable, the date on which the duty is so determined; (b) for the amount of increased duty, the date of order by which the increased amount of duty is first determined to be payable; (c) for the amount of further increase of duty, the date of order on which the duty is so further increased.] Sec.[11AB. Interest on delayed payment ....
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...., as the case may be, the court, the interest shall be payable on such increased or further increased amount of duty.] SECTION [11AC. - Penalty for short-levy or non-levy of duty in certain cases. - Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reasons of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (2) of Section 11A, shall also be liable to pay a penalty equal to the duty so determined : Provided that where the duty determined to be payable is red....