Gujarat High Court
Commissioner - Central Excise Customs & ... vs C I Vaghani - Managing Director - M/S ... on 10 July, 2012
Author: V. M. Sahai
Bench: V. M. Sahai, N.V. Anjaria
TAXAP/303/2012 1/2 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 303 of 2012
WITH
TAX APPEAL No. 304 of 2012
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COMMISSIONER - CENTRAL EXCISE CUSTOMS & SERVICE TAX - VAPI -
Appellant
Versus
C I VAGHANI - MANAGING DIRECTOR - M/S MILTON PLASTICS LTD -
Opponent
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Appearance :
MR GAURANG H BHATT for Appellant.
None for Opponent.
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CORAM : HONOURABLE MR.JUSTICE V. M. SAHAI
and
HONOURABLE MR.JUSTICE N.V. ANJARIA
Date : 10/07/2012
ORAL ORDER
(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) Heard Mr. Gaurang H. Bhatt, learned Standing Counsel for the revenue.
ADMIT. We formulate the following substantial questions of law which arise in these appeals :-
"(i) Whether the demand issued under erstwhile Rule 57(1)(ii) is legally valid as per the rules in existence when the show-cause notice was issued and view of its substitution w.e.f.
1.4.2000 vide Notification No.11/2000 CE (NT) dated 1.3.2000. Further substitution with new set of Rules vide Notification No.27/2000 CE (NT) dated 31.3.2000 and whether the proceedings could continue under Section 38 A of Central Excise Act, 1944 in view Sections 131 and 132 of TAXAP/303/2012 2/2 ORDER the Finance Act, 2001 which introduces saving and validating provisions ?
(ii) Whether the learned CESTA Tribunal is justified in the eye of law, in the facts and the circumstances of the case, in setting aside the recovery of irregular modvat credit amounting to Rs.18,07,195/-, under erstwhile Rule 57 I, having been fraudulent availed in respect of inputs during the period 1998-1999 to 1999-2000 and in setting aside equal penalty of Rs.18,07,195/-, imposed under Rule erstwhile 57 I(4) and recovery of interest at the appropriate rate on the amount of modvat credit determined to be disallowable and recoverable under erstwhile Rule 57 I (5) ?
(iii) Whether the learned CESTA Tribunal is justified in the eye of law, in view of the facts and the circumstances of the case, in setting aside penalty of Rs.2,00,000/- imposed on Shri C.I. Vaghani, Managing Director of M/s. Milton Plastics Limited, and Rs.1,00,000/- on Shri Satish Kulkarni, Manager (Plant) of M/s. Milton Plastics Limited under Rule 209 A of erstwhile Central Excise Rules, 1944 ?'' Issue notice to the other side. Paper book be filed within 3 months.
[V. M. SAHAI, J.] [N. V. ANJARIA, J.] Savariya