2025 (5) TMI 2094

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.... Advocate for the Appellant Ms. O.M. Reena, Authorized Representative for the Respondent ORDER Facts of the case as could be gathered from the impounded Order-in-Appeal No. 194/2015 (CXA-I) dated 25.08.2015 are that the appellant namely, M/s.BMW India Private Limited are engaged in the manufacture of cars and clearing the same at factory gate under Central Excise invoice to Vehicle Distri....

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....interest and penalty; also appropriated the amount paid by the assessee prior to the Show Cause Notice. Seriously aggrieved by the above demands, it appears that the assesee filed an appeal before the First Appellate Authority and the First Appellate Authority, vide Order-in-Appeal No.194/2015 (CXA-I) dated 25.08.2015 having partly allowed their appeal, but upholding the duty and interest, the pre....

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....in the Show Cause Notice were totally different. There was no proposal in the Show Cause Notice to the effect that the process undertook by the appellant was incidental or ancillary to the completion of the final product; had the same been put across in the SCN, the appellant would have explained the nature of work carried on by it and hence, the resultant finding in the Order-in-Original is not w....

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.... along with interest much before the issuance of Show Cause Notice. For this reason, the First Appellate Authority has deleted the penalty under section 11 AC of the Central Excise Act, 1944, which means that the fact of issuance of show cause notice was in essence for appropriation of the duty remitted. Thus, we are of the view that there was no sanctity for the issuance of Show Cause Notice, sin....