AVISHKAAR PROCESSING MILLS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) ON an appeal filed by the Revenue against the order of this Tribunal No. A/1666 & 1667/WZB/05 -C -III/SMB dated 31.10.05, Hon'ble High Court of Gujarat has remanded the matter with the following observations.

(2.) LEARNED advocate for the appellants submits that Revenue had challenged the order of the Tribunal only with regard to penalties on the director of the company and duty demand had not been challenged at all. In support of this contention he submits a copy of the appeal filed by the Revenue. However, he also drew my attention to the question of law framed by the Hon'ble High Court which is as under:

(3.) I have considered the submissions and I find that as rightly pointed out by the learned advocate, the Tribunal found that duty demand itself was not sustainable. It was on this ground that penalty was also set aside. It is also noticed from the copy of the appeal submitted by the learned advocate and the question of law framed by the Hon'ble High Court that the appeal filed by the Revenue challenged only non imposition of penalty and issue of correctness of dropping of duty demand was not mentioned at all in the appeal. Under these circumstances, the question of considering penalty under Section 11AC of Central Excise Act, 1944 on the appellant company or the director under Rule 209A of Central Excise Rules, 1944 does not arise. Accordingly, the appeals filed by the director as well as the company are allowed. In any case even though appeal filed by the Revenue had contested the penalty on the director also, yet the Hon'ble High Court had not framed question of law with regard to the penalty on the director and further in the cause title also the director's name does not figure.