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The Commissioner of Central Excise v/s M/s. Ranga Balaji Cotton Mills & Another


Company & Directors' Information:- THE COTTON CORPORATION OF INDIA LIMITED [Active] CIN = U51490MH1970GOI014733

Company & Directors' Information:- J. K. COTTON LIMITED [Active] CIN = U17111UP1924PLC000275

Company & Directors' Information:- P A S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111TN2005PTC058104

Company & Directors' Information:- V R A COTTON MILLS PRIVATE LIMITED [Active] CIN = U15311PB1997PTC020061

Company & Directors' Information:- P D COTTON PRIVATE LIMITED [Active] CIN = U52321GJ2007PTC051857

Company & Directors' Information:- C A V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1987PTC002014

Company & Directors' Information:- R. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2010PTC061139

Company & Directors' Information:- V K S M COTTON MILLS LIMITED [Active] CIN = U17111TZ1998PLC008682

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Active] CIN = U17120MH1994PTC156054

Company & Directors' Information:- P K COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111DL2004PTC130281

Company & Directors' Information:- P. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2007PTC050747

Company & Directors' Information:- B V COTTON PRIVATE LIMITED [Active] CIN = U17111GJ2004PTC044704

Company & Directors' Information:- S K COTTON PRIVATE LIMITED [Active] CIN = U17110GJ2006PTC047511

Company & Directors' Information:- S R COTTON PRIVATE LIMITED [Active] CIN = U17120KA2013PTC071881

Company & Directors' Information:- CENTRAL COTTON MILLS LTD [Strike Off] CIN = U17118WB1956PLC022864

Company & Directors' Information:- S D S COTTON PVT LTD [Active] CIN = U17115PB1991PTC011007

Company & Directors' Information:- K P G COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1993PTC004509

Company & Directors' Information:- D B V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1982PTC001145

Company & Directors' Information:- P A COTTON PVT LTD [Active] CIN = U74999WB1992PTC055525

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Not available for efiling] CIN = U17115PB1994PTC014981

Company & Directors' Information:- S S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115PB1997PTC019918

Company & Directors' Information:- K S COTTON PRIVATE LIMITED [Active] CIN = U17299WB2003PTC096994

Company & Directors' Information:- J R COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TN1996PTC034302

Company & Directors' Information:- D C H COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1997PTC008130

Company & Directors' Information:- B D COTTON PRIVATE LIMITED [Active] CIN = U51909GJ1978PTC003234

Company & Directors' Information:- L D COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17291MH2014PTC256832

Company & Directors' Information:- A D COTTON MILLS PVT LTD [Active] CIN = U99999MH1970PTC014837

Company & Directors' Information:- G K COTTON PVT LTD [Active] CIN = U00309BR1982PTC001698

Company & Directors' Information:- R R COTTON PRIVATE LIMITED [Active] CIN = U17111DL1998PTC094459

Company & Directors' Information:- BALAJI COTTON PRIVATE LIMITED [Strike Off] CIN = U52190WB2010PTC153326

Company & Directors' Information:- C R COTTON INDIA PRIVATE LIMITED [Active] CIN = U17299DL2006PTC145903

Company & Directors' Information:- V P K COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ2000PTC009530

    Civil Miscellaneous Appeal No. 2972 of 2007

    Decided On, 11 July 2014

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE R. SUDHAKAR & THE HONOURABLE MR. JUSTICE G.M. AKBAR ALI

    For the Petitioner: E. Vijay Anand, Standing Counsel. For the Respondents: R1, No appearance.



Judgment Text

R. Sudhakar, J.

1. This Civil Miscellaneous Appeal has been filed against the Final Order No.480 of 2007 dated 04.05.2007 on the file of the CESTAT. This Court, by order dated, 06.12.2007 admitted this appeal on the following substantial question of law:

"Whether the Tribunal is right in setting aside the mandatory equal amount of penalty that was rightly imposed by the lower appellate forum under section 11AC on a proven ground that the respondents had clandestinely cleared excisable goods?"

2. On a perusal of the order of the Tribunal, it is seen that the issue raised in this appeal relates to levy of penalty under Section 11AC of the Central Excise Act. After dispensing with the pre-deposit, the Tribunal disposed of the appeal filed by the assessee at the admission stage itself by relying on the decision reported in 2003 (161) E.L.T. 285 (Rashtriya Ispat Nigam Ltd. V. Commissioner of Central Excise, Visakhapatnam), as affirmed by the Apex Court reported in 2004 (163) E.L.T.A.53 (S.C.) on the ground that the duty was paid by the assessee prior to the issuance of show cause notice. Aggrieved by the said order of the Tribunal, the Revenue has filed the present appeal.

3. The Supreme Court in the case of Union of India V. Rajasthan Spinning and Weaving Mills reported in JT 2009 (7) SC 314 = 2009 (238) E.L.T. 3 (S.C.) has clearly held that mere payment of differential duty whether before or after the show cause notice would not alter the situation and they would be liable for penalty in case the conditions for imposing such penalty spelt out in Section 11 AC of the Act are attracted.

4. In view of the categorical statement of law by the Supreme Court in the above-stated decision reported in JT 2009 (7) SC 314 = 2009 (238) E.L.T. 3 (S.C.) (Union of India V. Rajasthan Spinning and Weaving Mills), the question of exonerating the assessee from payment of penalty does not arise. Hence, this appeal deserves to be allowed and the question of law has to be answered in favour of the Revenue and the question of law is answered in favour of the Revenue. However, th

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e assessee will be entitled to any other benefit in terms of the proviso to Section 11AC of the Central Excise Act. Accordingly, this Civil Miscellaneous Appeal stands allowed and the order of the Tribunal stands set aside. No costs.
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