Karnataka High Court
Commissioner Of Central Excise vs M/S Presscom Products on 7 March, 2011
Equivalent citations: 2011 (2) AIR KAR R 803
Bench: N.Kumar, Ravi Malimath
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due to ci>L.»er$1'ghi or sc>:'7'1e misfttzke Czrld if is .¢"1Iz}3I':"'<--._ "
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or shciri: payrmmI" €3i(:., Qf €itz.ly is "by .zj'¢2::i:;g,1r'1' _(§;'"
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supression Q/'_j'ac:.'f5. or contfrrzaarlznI.i.c<§r1.T oj' (§zr'1.__1;~o_f'
;;n'0u1'sioz'1s Qf {he Act or Q3" £{'ulesV":.r_1aL'5ca {I'1g'rL>z.:3j;:der
u,2iI'Ih inzenz. to evade ;9ay:%'1a{zif'z'--~,Qj' C1'T.l,LIl*':;.("f ~I',£1l.{1F" is If}
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mz;'cm:';. Nai,u.rc1lZ_g. "L'}':c3--.cr;1§3e5;§ : fEii£f::';§; 'in the (two
groups lead._ {,0 dg[;{Jg>.rez'Li cr)ns<2{f;iz(2ri'C:é€::::'" and are
dealt; uzitjh 4c'f.f7,{'[E3'?"€I'I:i'.£_t} gS.*3€rii.(5n. ":'-11%.;___Z1E>1:;ceu:2r allow
irhe (1$.f§(33Ls".';T€ii€':S'-v'i;"5'iV day.'_g;.I,;a.Ii.~~.2'.n" l;>t3{h .?.~"::'110.L<; Qf cases {:0
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araid. c()2'1d.i.f"2f;:2r':s;?.'i'h.:3' C-0,563 1;!/!I'z.c3re the non #payn2er1.r:'
or éljxcirr pcz;;rrz'e}'1«: v:::?'1i;(:,§."l.1.z['y is by reason. Q]: frc:1.u<:l
C?E)lZ1,££:;iQ{I e;'fi(?A, aI'€Adé3'{}7if'iifiiifl tmcier s1.zb--sect.ior1 (1 A}
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' ,€)'ag'rir2t3H§ or ShOviiifjaggmeat, Qf dtdy 11$ nof, iT'i{,&'f1Z.f(?I1C£E
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1'm.~z7>z'.c7e is dir'r3e:?:l;; reiaiczbie £10 £119 :2cz2z.--§é" rgf':
goods on {'l'2.<: date Qf c?£(;%(1r'<:zz1ge. her1.{:é;" {%§}§fi:a'i:1fi*edV
duzy. This e2nf1.c.2raced dzdiy isfm taczizgé _ T
Qf file goods on the date cj}'"«Vr(§;'.?_1c§vai. '§<§/;I'Ier12
d;']ferer1I,'ial duz'.;,r is pa€ci.'TVQf¥gfr £h(3 d(Zi.:Z'.
ii. £n.diCaI.es shorrwpayr?1:2r1f:}':s}zIc>r'1;ieuij iihé dkfie cggf
removai, hen.ce,V a';_1.I1(3r"e;=$5( j"()} AZ<:'>';<;.s; Qf
revenue, becrorrlzssaé"E35;2-iafgi¢i:i;i;*1ci£2;§':A_Sééciion IIAB of
the ACE. In_oz,zr L:i(;.z.;:,.,.a1;>it'Ii-fifty fifiizrlge in the
Scherrieg }'ecc§=;2er;:; ~ v..m:ider the Act.'
par:ic§c:£<:}{':fIy:~;:;{3;§;3 z'.-z??;;'..~'__c-:.=r{.r'g:"'z"_Qf Am: 24 qf 2001 and
AQ:m32= Qf this Cour! in the
chase [JiIrzivf'é~dv__/Supra} would moi appéy. "
X2. IiI¥:)xn;:ex-962.', Aé.hi>:,_f;3ou..rt. in the Casa of Bharat. Heavy"
iiecflzjigtais Cass {'1*e...f'(;;_;fr_,f_§:g'i 1:0 supra) held as; Llfidéifi «
. * I~;Iavfng heard the counsei on. both
an _pemsaZ eff' {he mC£.Z,€;?I'i.C£Z on f"€3C€)?'(§. {nae
_f'irz.%::;§. 'z:f:zaf' zihas gfzew army-»;€ f'l<'i}f.i{.'€' fSSI,£Q{f on
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V " rz2a::;§6 rs;%§;{,§r{§é:'2§; :'25.;~3:~;;2z:2§;:';':.8:':§ Q5' aimggj rm rj§.::f'C<§:.£f'§i <:3_;"'
' H 55's:-am-3 §e.:?f§':g' 52: ;;r2'..<:*e g:a.2":'.:zf2"m'z., f':rzz.2" {fag cis3r"22.:"zr1(i rmzzrrig
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dyjjérerziial price GLSK). 'f'%'u:=r.2gf%)re. we cannot <,i:'2%;:i2gg{'*._.,
the said. de<?i:sia:2 {:0 {has preseni case,"
13. '£716: Said ujxadgzxxezfi; :'.§%;1d§_jr<3d "
c?011i.r21ry to this law c.ie:{:1ared by €hC::'.§X'[3€i;X'€:;f)'Li'1Tt. '
two judgr1'1e~nt.s. Furi,her, i,hrs'T;s£zi§.1 ']'11€i'g;§1'I§'€::1V'i
ctonsicieratioxa the <=:xpIaI1.ati.Gz1 of Sectiun
HA and amordinglyv, 1'rccuriam".
'I'h(:ref{)r6:. the Eaw in the afomsaid
ud Fulani is nizit £taL"1VxL!IGd _
K14, . "'1T'*'i3r:V_ ééxfbregaiiici :~3i€d,L1t0ry 'proV;1si0I1.s and the 1.5m'
dc*:r:1ared" 1py- the (3Q1:1":~riV"'i:1 the aforesaici twm §udgr;1eni,s
m.ak<:_ it Cieéu" £3:-3V';.,';. i1*:':'c1*€3'5%t. ifs leviabkzz on delayed or deferrnéci
pa:,i'fi'$e1{1_f_.' of d.L:ij;'«f%r>.1f..'wha:.ie\:<:%1' :°£321s{>:1s. Submssecttiozu (213) of
.Sec1_:i<;2'1 i.1Aupzfm»-'ides t:I:'1at ihe assesstze in default} may' before
"'%'%%;%'__£"z¢;>"i['i:«:'§i~ 'L,1f1C§(;'I' ;<5~::.1b-s~3e<;7:ii:'):1 {3} E53 E-3£::"*m,ci 0:: hiim mziivge
§_:«é§§;3"a.{%:.":,.§:. . §:h2:: :..2n.§>s:?§.§.:§. {Em}? =€}':'.'2 iihzé %}a.:<;»;'§.5.~:a {:5 Z":;'.st; azafzz
as~;{*:s?;*€':z«1%:*2':"§::€::1E 0? 225 215t§(';{Tf§?'.2'iiI'2€f{§ E3}.-* 2.': !T7:€:m*.mE €><;{':§s§:;*, Gfficisér
V.;i:'§{i'-._inf{:~rr:1 ilhai? C:=:n'{.:"aE ?l:<'{*.i£~s:=% ()'{i'icm* 82 w:*i"(.i:'}g eibezffl Ehc
.
2} if the f:1SS€SS€f€'- r10t: at i"m.:11'::. cm zmy (:(mr.i, as the dt,ifi;.§§2:§}a1<bIe in lam? is :10': paid on the vazlme. 0? thtzé g'<:~0cis__{i;1 tA§5'<:vTL:'<;i--.<»3.t;'%;:---bf» re.mm--'2-11, ahe p21ymr;*1'1t' of im'.e"1'esi' E1¥I,i,F&1{?i€{1"iLL3v' the V of 1*ev€:m.1c2. When the §egisiaE:uré: c()br_;§s ci;.0'i1.:s1§;;_i;:1$E:**1:te:i t;h¢'3e p:"c)v'is§0'r1s in Seciion. IIAB. {he legal. Ejfifecii fi(;v;iA;fig f1'Om.';~1ut3h provisions is 10 be g1'.ver: '{'hf:£'¢f(33TC:;'_; aV{V":V1v{é;1"1'1'3V'(3r1ioL'1VS reading of the aforesaid,pr<3visjo:2VV:i"£';:1}K'-35 ii: ('?1fi€','Ei3T._'§1hEi:§[. interest is leviabie on 'the: dii'T"€31V'é1--3£:if¢a<} }f)1l]€S££afiCC of a su§:)seq_u€-mt. i1'1VQiC(;' ih€.: pr0p§:f under the law had not been Cm the 0f..{:'I'eég:."aVnc,fe:.
15. {hm ;fe1eV£m.i'. to pc>i:r1i; out that this was not the p£jLs.i.1i0'r1V'o§ E2:_$Af;:;fior to 11.5.2001 when sub--seC'{,iom (2}3';)'~K{3f V _S<:<;§tie:m A' "i'1A___;::zv1r1'1e i.m:o fore. Thiss is; oiaar from sub ' s§:'(;'..iQa1,2£', Se_cti0n .1 1A which re21ds Lander: --~ "§:?3{7} '}'7:.s-5 pr:;m'.:;€<;:2'zs <5?" :«;:.zb»~:-;e<:f.i.<:«n 5253} sshaii ?'c-:31'. agzijyiy {[63 any (rage? iU}'i.(-3I"€3 rm» c£:.z£j_L; fwd izaecome ';2§;.j;'gr:;é':}.fg> :f}§,:§§}':.§f ié::2 Em-.r..»:% §L?é:'é??'E. ;::«::zi::€ §9e:,%'%}:'z:? {"536 ::€:r2§'g> e " an ixzféfstié. §'?1g.> §'9'§;'2.e:z.:2:%s;r* §'.;%z'£E; 552$}? :"e.<.23~z'2::%3 {fie {Ef%$§;§é3?"¥.§ Q \ '\ qf' gm,» Pre3:3:ie:'2z""
€§£§S"i'A'i' émd Hégié {f<>1.':ri..s:;'i
16. 'I'1'1s3,1*ef'<.>1*<:u_ 'Unis p1"ev'isi.0n H12-ldt'. 01'11y pmspe«:*.i.ivr2. 1%; has no n3.i1f0s;3€:<:t.iVe operatizm. 'Yk1f:é it1i.f;'.§1i.iO1"'1 of IEH: 1.ttgi-<51i;1.L:1'e is; mads £11681" by-* <-:-t><pz"m-3:-:~ vmzxis 1:3}; '1nc01"p<)1*at;.iI1g{WS1:«b_>s:3(:i:_i011 {2C] by the very ;~§sa.I1'1€ :3..z1'1€I1dm€r11i by whichVviri-txfiresi. 'd;1.. deiayed payment; of dL1ty was m.:=1.cie 1VLf\»'iE1b.},{:',.:v
17. 'Fh<:*refor€3._. the ordei" __th<;*.u'i'1fi15t:{fiz+;}~Iiblciingv V that as £31163 dmy was paici eve21V-'s€<.f'é1re' iss§ue..g)fA5;how causse notice under su%:)»se<:1;.i0n {1}'n'i" ,S?3£jii()i:';f:i.A.11'%;» and. ihe:re'fo1°<:, no ixfierest. is 1.eviabEe:_ i:;:' éc"1i1'L;*;;.r_\} i.Zfi1e3. é1ibre:sai.ci Stat.ui.ery provisir;1'?iMéis-[.y};3}.§ "t.hé'.1.érw d€'(i'1:u'éd by H16 Apex Court. and, 1'.herefof<3_, ii.._c:2m_nVoEV"'be'*:s1is§.ai;}eci. A<7Co1*di.11g1y. 1?. is heretby set; aside. TheSab':-;T,a1'1.i,ié;}_v b(:1'u...f:'%és1it:>:1 of law frzlmed in this appeal is .. 4. afi5:$W:*31'€5,d§ 11"")? fz1v'(:i3;<0:f_f.Ev1e: :f€:venLze and aga1'1':s,~;$: t.h<-3 ' saxggcé it was pointed. out i:ha'1: the Cen't1'a1 §§i:>;?;.1*::§ <i>f E%LX::;:;:?sT€ Ei'i'§{§ C'3u:'=Si.{}§I'i§5 h;§.s:4 %:».3i~s1.:i:-::',§ 27: <:1:ir:;': ;,:§;1:3/i:':5aE.::"u.r;7t.§<}:'1. _"?i,-_i'i..i§:aii.:>I'1 ~ E¥«'£e::~3:";<?.§'::'=;:'}g §iE':':ii.§:; 313:' an<:§;3;;.:*'€.:1":i:z:"a%:..a'£ apgéezifizéa §'}{",§*£}E"t2f '§'hi$ :55 (mt? aitsf '£lh€ ss;&:.&.p.=; !..ake3n b};
F'§*--§{§.§:§S}§1;'EvEi::a:,,.f§éS>3f2O£{}~JC dziésici '2{).}Q.2€}§C,* in re3s§)ect sf agg / 2.3 the C€.z3'{.I'221E {Board ()i"E'iXc1'se. 2-mci. CL1s£'.01.ns. Péexx' £4,,\«'€'-}I4"viV..'"i-l'.1""'~I:7§:'ia';?.'iI"
21tt.€:111p'z. to §'E;'{h.1{'.(" '£1162 C%0\:'er11mm1t'. 1ii.§g21f:i{)I'1 i.'{i~'."i§'L4£.3fS$.1§'E}}'é{K23 {}f the N21'{'.i0naI L-it.igat'.ioI1 Policy .i'(J:'r11.1:'i;;££:{i.1:33: 'tiE"1e §§(3"Je§'1é%.:1§;f':1i,'cyf India airning ft) I'8Cit1C',f;', Gov<:1"I2:n:3.i2t :§§_1Iigé11,ié;:1":s{> 'thv.=%iu. i;i'1;:e Gc)ve21*m11ent. ('(321865 to be 21 {?(3il1j:}E11Si\'€? 17'L§gE11T1f.v ''i'f§EI¥:.'~~§2L1:I'})OS{5'w ' L1nder1yir1g this Policy is 'go €I1StjIT€_VV{{§'ii1f4' of the Courtzs spent in z*esV:)'i"x=';i'1j,<.;§, and in bringing;
down the ax»-'erag2;<«j=p'er1ci¢1'1'cy To achieve: this, the an efficieni and
r€%sspor1siI:)__3§§V iif1éV'rcas0r1s sci; out t.h<:-mi;t1 they hzwe 1.;:1~:efi V-':3~s:_t<SnsC'i{>£1-:a__<i-e<%isi0'n set, out in para 5 as u11der: -- " . ' .V T}'1.(é' Bo:1fr"c':2. }'1:::zs decided that appeals; in .w:':hg TriI§unai*SI1r:1H nof. be filed where the c:iuI.y v .?..\'inL;§<1iv::>.d or 'ih<:"~~----i.€5£aI reuenur-,> including fine and _ [):;?.{"l(x:5'fI'§;.;.._I';'3v __R'.<5.1 Lakh. and below. .S1'rni.lar£_y in the {;T{,'£L'5=c'§""'é,§j_r §=§i§E'é <':C}§i.I'fS appeafés sfiiiufzi. r3i{}€'. iwfiicci in CflL§£-SS "zgg-:f*ier£3 Eihe d1.:z':y i.r'1v0iL.:e::€. Gr Imaf reverzue :';::::.9§:.s{ffz2g2'{Er2.§% 0: ;}e.=-%:,:t:£.€.;; .E"%5;;:;2 523253 3>a?Eo:..y..
I i3v?€§§é,% (,i{%::':'.{£.z'.z'2§ §§'2z;? §§'m55a:f":.{3§.a;§;<§ :'7':.{':*z3.izf:.;z"z.e{§ {;.-:§}c.;:.:a;%, 5.5%:
..{i1.i:y :'2'w<')Zve.=£f sfzaii be Z":'2<-'3 {€.e%::i5fz,¢é'? e>Ee:'n@r'24{.; P'<3r"
W I''''' \'\ 26 Tile Ssz.z't)s3t,.:-1x1t:3'a,i qué:s1'1'<>1': of law answe1":3.ci 11'}. iv-&«g-X"fl%{'3%*4EVV1;'!r')'%" i'.h:% r<2vr:é111,z€ zmci 21gai.11s1. the I;~ic}V.v<:%*ver", 'iifi.§? §.;:;.f,::1'ia%f1i,.g5f' 3 iI1t:er't3st. by \:-"i2"'t'.:.:e of tlne Order whi<:1r:' 110w '.I'ess§',0;_*€t'd._:1b:1~i:€:s in View <)fl.I1e <*.i1*(*.':;12?u" §.$s'L,1.eci by the C}c)1?e1'nL--'11é11i':. 01:1 / A. --