POLYMER PAPERS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal has been preferred by the assessee-appellant under section 35G of the Central Excise Act, 1944 (in short, "the Act") against the order dated 28.8.2012, Annexure A.7 passed by the Customs, Excise and Service Tax Appellate Tribunal (in short, "the Tribunal") in Appeal No.E/2711/2007-SM, claiming following substantial questions of law:-

(2.) A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee is a limited company having its business premises at Faridabad. It is engaged in the manufacture of Filters falling under Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985. It is registered with the respondent department and is regularly paying duty on goods manufactured and cleared from the factory. In the month of March 2001, the assessee cleared one consignment of Filters for export.The export was made vide export invoice No.127 dated 28.3.2001 and it was duly accounted in bond furnished with the respondent. The assessee prepared AR4 bearing No.84/2001 which was duly signed by the Inspector and the Superintendent of Central Excise. The goods were sealed in the presence of Excise officers. The appellant submitted proof of export with the office of Deputy Commissioner, Central Excise Division 1. On 13/14th August 2001, audit party of the respondent Commissionerate conducted audit of the appellant's accounts and returns for the period 2000-2001. During the course of audit of the accounts, the officers noticed that the appellant had shown a closing stock of 21354 nos. of Filters whereas in the balance sheet in their RT-12 returns for the month of March 2001, they had shown a closing balance of 11014 numbers of Filters.The respondent opined that the appellant had suppressed production of 10340 numbers of Filters and cleared the same without payment of duty. The respondent assessed value of 10340 numbers of Filters at Rs. 11,22,667/- and calculated demand of duty amounting to Rs. 1,79,563/-. Accordingly show cause notice dated 26.10.2004, Annexure A.3 was issued to the assessee to show cause as to why Central Excise duty alongwith penalty and interest be not imposed. The assessee filed reply dated 3.11.2004 to the notice inter alia submitting that difference in figure shown in the return and balance sheet was due to wrong posting of balance of RG-1 by accounting section. The goods exported vide invoice dated 28.3.2001 had not been entered in RG-1 at the time of reporting of closing balance to account section. Resultantly, the goods exported vide invoice No.127 were not considered in balance sheet. The adjudicating authority vide order dated 31.8.2006 confirmed the duty demand in the show cause notice alongwith interest and 100% penalty under section 11AC of the Act. Aggrieved by the order, the appellant filed appeal before the Commissioner (Appeals). The assessee also filed written submissions at the time of hearing. Vide order dated 26.7.2007, Annexure A.5, the Commissioner (Appeals) dismissed the appeal. Still not satisfied, the assessee filed appeal before the Tribunal. Vide order dated 28.8.2012, Annexure A.7, the Tribunal dismissed the appeal. Hence the instant appeal by the assessee.

(3.) Learned counsel for the appellant-assessee submitted that the order dated 28.8.2012, Annexure A.7 passed by the Tribunal is a nonspeaking order. The Tribunal was required to deal with all factual and legal issues involved and dismissing the appeal of the assessee without any reasons was against the principles of natural justice.