2018 (3) TMI 490

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....ed. As per the provisions of EXIM Policy, the scrap generated has to be cleared on payment of duty. The appellants cleared the second quality goods in DTA without payment of duty on the ground that these are rejects and not dutiable. Officers visited the premises, conducted investigation and show-cause notice was issued dated 10.06.1997 for recovery of an amount of Rs. 29,59,494/- and proposing to confiscate the goods under Rule 173Q and Rule 226 of Central Excise Rules, 1944. The notice also proposed to imposed penalty under section 11 AC of the Central Excise Act, 1944 and Rule 9(2), 52A, 173Q and 226 of Central Excise Rules, 1944. The appellants filed reply to show-cause notice contesting the allegations. After due process of law, the or....

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....had directed the adjudicating authority to re-determine the penalty imposed. The Tribunal had categorically observed that the penalty imposed cannot sustain. The appellants had filed appeal before the Hon'ble High Court challenging the order passed by the Tribunal, in the first round of litigation. The same was brought to the notice of the adjudicating authority at the time of personal hearing. In spite of that the adjudicating authority proceeded to pass the impugned order confirming the equal penalty under section 11 AC read with Rule 173Q of Central Excise Rules. He pointed out that the provisions of section 11 AC was introduced only with effect from 28.09.1996 and, therefore, equal penalty imposed for the entire period will not sust....