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Search Results Judgments > Act:CENTRAL EXCISE ACT 1944 Section 11AA Page:8

Sep 20 2011

COMMISSIONER OF CENTRAL EXCISE Vs. M/S BISHT ELECTRONICS

  • Decided on : 20-Sep-2011

Court : Delhi

... challan found on the premises were also resumed under the said punchnama. 8. The statement of Rukum Singh, i.e., the proprietor was also recorded under Section 14 of the Central Excise Act, 1944 (in short C.E. Act). The revenue came to the conclusion that the assessee had manufactured and removed goods during the period 1997 to 2001, and therefore evaded duty to the extent ... scheme of Sections 11A, 11AA, 11AB and 11AC of the Act. It is evident that Section 11A prescribes procedure for recovery of duties not levied or not paid, or short-levied or short-paid, or erroneously refunded. Sub-Section (1) within itself and within its proviso covers the cases of duty not paid/ short paid in absence of mens rea or with intention. Section 11A(2 ... the Customs, Excise and Service Tax Appellate Tribunal (in short Tribunal) dated 01.12.2005. The appeal had been admitted on 10.05.2006 by a division bench of this court. By the said order following questions of law were framed for adjudication: (i) Whether CESTAT was right in law in reducing the penalty leviable under Section 11AC of the Central Excise Act, 1944, even when ... the Central Excise Rules, 1944 read with the first proviso of Section 11A of the C.E. Act; penalty not be imposed under Section 11AC of the C.E. Act read with Rule 173Q of the erstwhile Rules; and, lastly interest not be charged under Section 11AB of the C.E. Act. 9. After giving opportunity to the assessee, by an order dated 31.07.2003 the Commissioner of Central Excise ...

Nov 27 2012

KAPRI INTL PVT LTD Vs. ----

  • Decided on : 27-Nov-2012

Court : Delhi

... the quantum of interest.15. Learned counsel for the respondent has drawn attention of this Court to the provisions of Section 11AA of the Central Excise Act, 1944 (hereinafter referred to as the said Act); submission being that this provision relating to interest was notified under the Act w.e.f. 26.05.1995; the liability to pay interest on the aforenoted amount becomes automatic; this would be ... company is in liquidation and Chapter VII of the Companies Act dealing with the winding up of a company would be applicable; submission being that in this case, the company had been wound up on 01.05.1995 and provisions of Section 529-A of the Companies Act would be applicable. The Central Excise Department is only a preferential creditor and his debt has to ... a company in liquidation was negatived which necessarily has to be governed by the provisions of the Companies Act.17. In the present case, admittedly, the company had gone into liquidation on 01.05.1995; Chapter VII of the Companies Act would be applicable. The Central Excise Department is only a preferential creditor; he has to be paid only after the claim of the ... of the declaration of each dividend.20. In the present case admittedly no interest was agreed upon between the parties; argument of the respondent is to the effect that Section 11AA of the Act is operative by law and interest becomes payable in view of this statutory provision. Rule 156 envisages a situation where no rate of interest has been agreed upon between ...

Jul 23 2005

M.J. Foods Industries Pvt. Ltd. Vs. Regional Provident Fund Commission ...

  • Decided on : 23-Jul-2005

Court : Orissa

Reported in : IV(2005)BC294; [2005(107)FLR599]; (2006)IILLJ473Ori

... v. Assistant Commissioner Central Excise and Ors. (supra) and submitted that the Central Excise and Customs Act has similar provisions and while interpreting the said provision this Court in the aforesaid case also held that Crown has the first charge over the property.9. From the discussions made earlier, I am of the view that under Section 29 of the State Financial Corporations Act, Orissa State ... Commissioner Central Excise and Ors., reported in Vol. 93 (2002) CLT 460.8. Keeping in mind the submissions made by the Learned Counsel for the, parties as well as with reference to the relevant provisions of the Act and the decisions cited, I may proceed to examine the rival contentions of the parties.Section 8 of the Employees Provident Funds and Miscellaneous Provisions Act, ... State Financial Corporations Act, 1951, it appears that when the Corporation exercises power under Section 29 of the Act it takes over an establishment and shall have the right to take over management or possession or both of the industrial concern as well as the right to transfer by way of lease or sale. Sub-section (4) of Section 29 of the Act prescribes that ... or both of the industrial concern as well as the right to transfer by way of lease or sale. Sub-section (4) of Section 29 of the Act prescribes that where any action has been taken against an industrial concern under Section 29 all costs, charges an expenses which in the opinion of the Financial Corporation have been properly incurred by it ...

Nov 01 1996

Western Hatcheries Ltd. Vs. Commissioner Of C. Ex.

  • Decided on : 01-Nov-1996

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Delhi

Reported in : (1997)(90)ELT492TriDel

... the Central Excise Rules, nor it can be read to circumvent the provisions of Section 11AA. This is obvious itself. However, to make explicit what is implicit therein, we clarify that the Department would be free to assess the goods as per law at the time of clearance and the provisions of Section 11AA would have its own play in the matter." We note that the Excise ... has argued that the Show Cause Notice in question raises the demand on the alleged ground of classification of their product under Heading : 29.36 and 3003.10 of the Central Excise Tariff Act, 1985 as against the applicant's claim of Heading : 23.02. He submits that earlier also, the Collector (Appeals) has, vide his Order dated 30-11-1995, decided the ... the provisions of law and of Section 11AA we find that the said section provides for interest after a period of 3 months from the date of confirmation of demand by the first adjudicating authority. The provisions of the said section cannot be circumvented by seeking stay of proceedings before Collector which will create a bad precedent.Collector of Central Excise v. Kama Industries Ltd. reported ... per law at the time of clearance and the provisions of Section 11AA would have its own play in the matter." We note that the Excise Authorities have been given a free hand to deal with the future clearance in accordance with the provisions of law and of Section 11AA we find that the said section provides for interest after a period of 3 months from ...

Oct 07 1997

Gujarat Petrosynthese Ltd. Vs. Commissioner Of C. Ex.

  • Decided on : 07-Oct-1997

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Mumbai

Reported in : (1998)(102)ELT293Tri(Mum.)bai

... had wilfully not carried out any analytical report in respect of the constituent contained in the return stream. The Collector, invoking the longer period for demanding the duty under Section 11A, Central Excise Act, confirmed demand of duty Rs. 39,38,396.95 and also imposed penalty of Rs. 20 lakhs on the appellants.3. We have heard Shri B.N. Rangwani ... obtained permission for the Department to obtain the raw material C4 Raffinate (Liquified Petroleum Gas, LPG) classified under Item 11AA CET/2711.19 CETA from IPCL claiming exemption under Notification 276/67. Procedure laid down under Chapter X of Central Excise Rules was also followed as prescribed in the condition to the notification. The department issued L6 licence to the appellants ... as surplus. If a different view is now to be taken on the same facts and circumstances, it can only be enforced within the normal time limit prescribed under Section 11A Central Excise Act, and the appellants cannot be subjected to penal consequences. Moreover as per Assistant Collector's order the goods are to be taken into non duty paid stock of ... receive excess stream from IPCL. Permission was accordingly granted as such return of surplus material is covered under Rule 196A of Central Excise Rules. IPCL also sought clarification on this and in reply to them the jurisdictional Assistant Collector of Central Excise, Division IV, Vadodara, replied vide his letter dated 23-4-1984 that C4 Raffinate remains the same after circulation in ...

Jan 21 1998

Maruti Udyog Limited Vs. Collector Of Central Excise

  • Decided on : 21-Jan-1998

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Delhi

Reported in : (1998)(101)ELT675TriDel

... manufacturers of the items in dispute? (IV) Whether the appellants are liable to pay interest under Section 11AB of the Central Excise Act, 1944? (V) Whether the appellants are liable to penalty under Rule 173Q of the Central Excise Rules read with Section 11 AC of the Central Excise Act, 1944? Issue No I. Notification No. 217/86 exempts goods specified in Col. 2 of the ... The date of determination is as provided in Section 11A(2). Wherever the legislature wanted to refer example, Section 11A(2), Section 11AA(1).Even Section 11AB(1) maintains the above distinction. Therefore, when Section 11AB(2) uses the expression 'duty become payable', it is used in contra distinction to 'date of determination, under Section 11A(2).Interest is a Substantive liability ... . Issue No. IV: Section 11AB of the Central Excise Act, 1944 provides for levy of interest equal to the duty amount in cases where the duty became payable on clearances effected after this section was introduced in the Statute and such duty has not been paid. Section 11AB(2) states that the provisions of Sub-section (i) of Section 11AB shall not apply ... be imposed under Section 11 AC of the Central Excise Act, 1944.The relevant extract from the circular (which is binding on the Revenue authorities) is reproduced below : [Copy of letter F. No.354/118/96-TRU, dated 6th January, 1997 from the Director (TRU), Ministry of Finance, Department of Revenue, Central Board of Excise & Customs addressed to all Commissioners of Central Excise/All ...

Jun 08 2000

Visen Fabrics Vs. Commissioner Of Central Excise

  • Decided on : 08-Jun-2000

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Mumbai

Reported in : (2000)(71)ECC554

... that the penalty is mandatorily to be imposed as equal to the amount delayed in payment. He submits that the language of Section 11 AC of the Central Excise Act, 1944. Is more specific suggesting imposition of mandatory penalty. He refers to the judgment of the Tribunal in the case of Escorts JCB Ltd. ... us. We also observe that by virtue of Section 11AA and Section 11AB of the Act, the interest on delayed payments of duty has been elevated to the status of the recovery of duty Under Section 11A of the Act. The language used in the said section is that "the. person liable who is to ... of after granting waiver of the penalties imposed in this case.3. The appellants were operating under the provisions of Rule 96ZQ of the Central Excise Act, 1944. In terms of this rule a specific amount per Chamber per month had to be deposited by such processors by the 15th of each month ... Act. The language used in the said section is that "the. person liable who is to pay duty shall be liable to pay interest". The wording used in the rule before us is "he shall be liable to, a penalty". There is an essential distinction in the manner in which the rule has been framed from the manner in which the section ... penalty". There is an essential distinction in the manner in which the rule has been framed from the manner in which the section has been framed. Even when section suggests the mandatory nature the Tribunal in the cited order has given a different interpretation. On both the counts we find that ...

Feb 27 2001

M/S. Wipro And 50 Others Vs. Cce Bangalore - I & Others

  • Decided on : 27-Feb-2001

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Bangalore

... Central Excise Rules subsequent to its repeal/omission. In the said judgement the Hon'ble Supreme Court considered its earlier judgement in the case of Rayala Corporation Pvt. Ltd., 1969 (2) SCC.412 wherein it was held as under:- "Section 6 of the General Clauses Act only applies to repeals and not omission and applies when the repeat is of a Central Act ... 31.3.2000, all wrongly availed credit on modvat inputs could be demanded by the Department under rule 57 I of the CER, 1944. Similarly wrongly availed credit on capital goods could be recovered under Rule 57U. The Modvat scheme was replaced by the new scheme ... excise...... paid on any inputs or capital goods received in the factory on or after the first day of April 2000. 57 AH reads: "where the CENVAT credit has been taken or utilised wrongly, the same alongwith interest shall be recovered from the manufacturer and the provisions of Sections 11A, 11AA and 11AB of the Act ... of Rules-Effect of Section 6 of General Clauses Act applies only in respect of a Central Act or Regulation and not to repeal of a Rule-when the Legislature by clear and un-ambiguous language has extended the provision of Section 6 to cases of repeal of a 'Central Act' or 'Regulation' ... "Section 6 of the General Clauses Act only applies to repeals and not omission and applies when the repeat is of a Central Act or Regulation and not of a Rule '(Para 17) and reaffirmed its views and held that the protection available under Section 6 of the General Clause Act, 1897 ...

Jan 31 2002

Birla Corporation Ltd. Vs. Commissioner Of Central Excise,

  • Decided on : 31-Jan-2002

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Delhi

Reported in : (2002)(142)ELT139TriDel

... like duty, therefore, Section 35F should be considered to include interest also.5. We have heard the submissions of both the sides. We note that two words in Section 35F of the Central Excise Act, 1944 are 'duty demanded' and 'penalty imposed'. There is no explanation appended to this section that duty includes interest also. In the absence of the specific provisions under Section 35F for predeposit of ... the Stay Application stating that in the Stay Application the applicant had prayed for stay of recovery of duty whereas actually the stay application was filed for staying interest under Section 11AA amounting to Rs. 9,71,880/- (Rupees nine lac seventy one thousand eight hundred eighty). Arguing the Miscellaneous Application Shri Sanjay Grover, learned Counsel submits that the mistake has crept ... therein. Miscellaneous Application is allowed and the matter shall now remain confined to stay of interest amounting to Rs. 9,71,880/-.3. The learned Counsel submits that Section 35F of the Central Excise Act, 1944 provides for deposit of duty demanded or penalty levied pending finalisation of the appeal. He submits that there is no mention of interest. Learned Counsel submits that duty does ...

Feb 26 2002

Spectrum Paints Pvt. Ltd. Vs. Commissioner Of Central Excise,

  • Decided on : 26-Feb-2002

Court : Customs - Excise & Service Tax Appellate Tribunal (CESTAT) - Delhi

Reported in : (2002)(142)ELT687TriDel

... . The adjudicating authority by an order dated 27-10-99 had confirmed the demand against the appellant to the extent of Rs. 1,84,915/- under Section 11A of the Central Excise Act, 1944, interest on the demand under Section 11AA and penalty of Rs. 1,00,000/- imposed under Rule 173Q on the ground of evasion of duty by non-inclusion of handling charges in the ... at factory gate, In order to substantiate its contention, the appellant has referred to its pattern-of payment of sales tax under the Sales Act, Rajasthan at a higher rate than under the provisions of General Sales Act at Delhi if the sale had taken place at Delhi. The learned counsel for the appellant further pointed out that in the show cause ...

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