2020 (4) TMI 10

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....18DB, dated 25th June, 2019. 2. The Revenue has proposed the following two questions of law for the consideration of this Court. [A] Whether in the facts and circumstances of the present case, an appeal under Section 129A(3) was maintainable before the CESTAT, challenging a Compounding Order passed by the Compounding Authority? [B] Whether in the facts and circumstances of the present case, the CESTAT was right in interpreting the Order in Original dated 31.03.2005 and coming to a conclusion that there was no demand of redemption fine? 3. So far as the first question of law as proposed by the Revenue is concerned, the same stands answered vide judgment and order rendered by a Coordinate Bench of this Court in the case of Commissioner ....

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....grant, compounding upon such conditions that may be imposed by him. It is thus, clear that the compounding authority exercises its discretionary power and decides an application filed by the appellant for compounding the offence. By no stretch of imagination, it can be stated that any such order either allowing or rejecting the application for compounding is not an order passed by the Commissioner as adjudicating authority as defined under Section 2(a) of the Act. Any such order would certainly be an order passed under the Act. The words "any order or decision under the Act" used in Section 2(a) of the Central Excise Act, 1944, defining the term, "Adjudicating authority", must take in its fold an order deciding the lis of a party and would ....

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.... fine. The Hon'ble Gujarat High Court, in a set of cases in the same SCN and Adjudication Order, held that since there is no clear proposal in the SCN on imposition of redemption fine and also in the OIO, there is no crystallized demand of redemption fine against each noticee. It was held that the department could not recover fine from the noticee. In this position, there is no demand of redemption fine against the appellants. In this view, there is no case of demand of redemption fine, Therefore, the rejection of application for nonpayment or redemption fine if not correct and legal. Accordingly, the impugned order is set aside and appeals are allowed. The Chief Commissioner (Competent Authority) is directed to reconsider the applicati....