PARAS STEELS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appellant-assessee has filed the instant appeal under Sec. 35G of the Central Excise Act, 1944 (in short 'the Act') against the order dated 111-2011 (Annexure A-6) passed by the Customs, Excise and Service Tax Appellate Tribunal (in short 'the Tribunal') in Excise Appeal No. 2926 of 2009. Further prayer has been made for staying the operation of the orders dated 1-11-2011, 30-1-2009 and 307-2009 (Annexures A-6, A-2 and A-3, respectively).

(2.) A few facts relevant for the adjudication of the controversy involved as narrated in the appeal may be noticed. The appellant-M/s. Paras Steels Ltd., Mandi Gobindgarh was registered with the Central Excise Department as a registered manufacturer of flats below 3mm in thickness and non-alloy steel ingots. The said registration certificate was surrendered on 30-5-2008. The Department issued a show cause notice dated 9-7-2008, after investigation of transactions of M/s. Rohit Ispat and M/s. Shri Balaji Ispat. In the show cause notice, it was alleged that the above said two companies were issuing duty paid invoices without actual supply of goods. It was further alleged that the assessee being manufacturer had entered into paper transactions without actual transfer of goods and wrongfully credited Cenvat credit amounting to Rs. 4,98,584/-. The assessee reversed appropriate Cenvat credit which was reflected in its register as entry No. 811 on 3-3-2008 i.e. even before the issuance of the show cause notice. The assessee submitted a reply to the show cause notice saying that the goods were actually received by it and corresponding manufacturing records were produced. Thereafter, the Deputy Commissioner decided the show cause notice vide order dated 30-1-2009, whereby, recovery of Cenvat credit of Rs. 4,98,584/- along with applicable interest under Rule 14 of the Cenvat Credit Rules, 2004 read with Sections 11A and 11AB of the Central Excise Act, 1924, was confirmed. Further, a 100% penalty amounting to Rs. 4,98,584/- was imposed along with payment of interest. Aggrieved by the order, the assessee filed an appeal before the Commissioner (Appeals), Central Excise, Chandigarh. Vide order dated 30-7-2009 (Annexure A-3), the said appeal was dismissed. Still not satisfied, the assessee filed an appeal before the Tribunal along with stay application dated 9-10-2009. The Tribunal vide its stay order dated 19-3-2010 (Annexure A-5), considering the fact that the assessee had already debited the duty amount, asked the assessee to deposit 25% of the penalty amount along with interest. The assessee deposited 25% of the penalty amount, amounting to Rs. 1,24,646/- vide challan dated 14-9-2011. The assessee deposited the total penalty amount in various installments by 3-12-2014. The Tribunal vide its common order dated 1-11-2011, dismissed seven appeals including that of the assessee arising out of the order dated 30-7-2009 passed by the Commissioner (Appeals) for non-compliance. The assessee came to know about the dismissal of its appeal on account of non-compliance when other appeals arising out of the same impugned order dated 30-7-2009 were decided by the Tribunal. The Tribunal vide its common order dated 29-8-2016 decided the appeals in favour of the assessees. Hence, the instant appeal by the appellant-assessee.

(3.) We have heard Learned Counsel for the parties.