Custom, Excise & Service Tax Tribunal
M/S.Rallis India Ltd vs Commissioner Of Central Excise, ... on 8 August, 2008
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
E/602/2001
[Arising out of Order-in-Appeal No.36/2001 (CBE)(GVN) dated 28-02-2001 passed by the Commissioner of Central Excise (Appeals), Tiruchirapalli]
For approval and signature:
Honble Mr. P.G. CHACKO
Member (Judicial)
Honble Mr. P. KARTHIKEYAN
Member (Technical)
_________________________________________________
1.
Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT(Procedure) Rules, 1982?
2.
Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3.
Whether the Members wish to see the fair copy of the Order?
4.
Whether Order is to be circulated to the Departmental Authorities?
M/s.Rallis India Ltd.
Appellants
Versus
Commissioner of Central Excise, Coimbatore
Respondent
Appearance:
Shri M. Kannan, Adv. for the Appellants Shri N.J. Kumaresh, SDR for the Respondent CORAM:
Mr. P.G. Chacko, Honble Member (Judicial) Mr. P. Karthikeyan, Honble Member (Technical) Date of hearing :08.08.2008 Date of decision :08.08.2008 FINAL ORDER NO.____________ Per P. Karthikeyan:
This is an appeal filed by M/s.Rallis India Ltd. In the impugned order, the Commissioner (Appeals) sustained the order of the original authority demanding duty of Rs.11,026/- not paid by the assessee on clearances of its final products during the period 27.2.93 to 24.1.96. The appellant cleared certain quantities of such fertilizers to M/s.Cottlabs (P) Ltd., and M/s.Hygeia Feeds & Minerals Co. Ltd., who did not use these goods as fertiliser. The appellant had cleared the goods availing exemption extended under Notification No.181/86-CE dated 1.3.86. The exemption was subject to the condition that the goods cleared were used as fertilizers. Investigations conducted by the departmental authorities revealed that consignments of fertilizers cleared to the above two customers of the appellants had not used the same as fertilizer. After due process of law, the original authority demanded Rs.11,026/- being exemption irregularly availed by the assessee and imposed equal penalty under Rule 9(2) and Rule 173Q read with Section 11AC of the Central Excise Act 44. The Commissioner has sustained the demand and penalty.
2. The grounds taken by the appellants are reiterated by the learned counsel. It is submitted that there was no suppression of fact with intention to evade payment of duty and, therefore, the demand confirmed pursuant to a show cause notice invoking extended period was not sustainable. Penalty could not be imposed under Section 11AC as the transactions had taken place in January, 1996 much before the enactment of Section 11AC in September, 1996.
3. Learned SDR reiterated the findings contained in the impugned order.
4. We have carefully considered the facts of the case and the submissions by both sides. There is no dispute that the assessee had filed a classification list declaring the impugned product as eligible for exemption under Notification No.181/86-CE dated 1.3.86. However, the appellants cleared the fertilizer manufactured by them to poultry units to be used as feed for chickens. Therefore, they knowingly availed inadmissible exemption on the impugned consignments. Therefore, the plea of the appellants that extended period could not be invoked in the absence of suppression of facts is not acceptable. However, we find that equal amount of penalty imposed on the appellants invoking Section 11AC is not correct. The transactions attracted penalty under Section 173Q of the Central Excise Rules, 1944. We also find that equal penalty is a little too harsh in the facts of the case. In the circumstances, we take a lenient view as regards the penalty and reduce the same from Rs.11,026/- to Rs.2,000/- (Rupees Two Thousand only). But for this relief the appeal is dismissed. (Dictated and pronounced in open court) (P.KARTHIKEYAN) (P.G. CHACKO) MEMBER (T) MEMBER (J) ksr 08-08-2008 ??
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