Penalty for Excise Duty Default: CESTAT quashes Penalty on ground of Order deleting Proceedings against Co-Notices become Final [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed Penalty on ground of Order deleting Proceedings against Co-Notices become Final as there was Penalty for Excise Duty Default. The appeal has been preferred by M/s. Ultramix Computer Support System Appellant Pvt. Ltd.

The Appellant 2, Jayant Shirwadkar and Appellant 3, Shrikant Shirwadkar admitted to their role in the alleged activities for evading the central excise duty they also admitted the fact that they were collecting the duty at 30 % on the value of goods supplied to their customers as Central Excise Duty as per the contract, but were not paying the same to government account.

Hence both Shrikant Shiwadkar and Jayant Shiwadkar were in complete knowledge of the things in relation to clearance of these goods without payment of duty. These goods which have been cleared without payment of duty are liable for confiscation and hence penalties under Rule 2009A are justifiable and cannot be faulted with.

The Bench consisting of Sanjiv Srivastava, Technical Member and Ajay Sharma, Judicial Member observed that “It is also not in dispute that the no appeal against this order dated 09.01.2002 was filed by the revenue and other co-noticee in the show cause notice i.e. Jayant Shirwadkar and Mrs H S Shirwadkar. In result the proceedings against these two co- noticees have become final and cannot be reopened by the Commissioner in de-novo proceedings as per the order of tribunal remanding the matter back to original authority in the appeals filed by M/s UCSSPL and Shrikant Shirwadkar.”

“Also in absence of the appeal by revenue against this order the order has acquired finality and Commissioner cannot have passed any order beyond the order passed by his predecessor. In view of this fact in our view the Commissioner order imposing penalty on Jayant Shirwadkar cannot be sustained and the penalty imposed on Shrikant Shirwadkar cannot be in excess of the penalty imposed by this order.”

To Read the full text of the Order CLICK HERE

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