{"id":269058,"date":"2009-02-25T00:00:00","date_gmt":"2009-02-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-ms-fas-kusum-ispat-p-ltd-and-on-25-february-2009"},"modified":"2017-03-06T05:55:46","modified_gmt":"2017-03-06T00:25:46","slug":"commissioner-of-central-excise-vs-ms-fas-kusum-ispat-p-ltd-and-on-25-february-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-ms-fas-kusum-ispat-p-ltd-and-on-25-february-2009","title":{"rendered":"Commissioner Of Central Excise &#8230; vs M\/S Fas Kusum Ispat (P) Ltd. And &#8230; on 25 February, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Central Excise &#8230; vs M\/S Fas Kusum Ispat (P) Ltd. And &#8230; on 25 February, 2009<\/div>\n<pre id=\"pre_1\">     IN THE HIGH COURT OF PUNJAB AND HARYANA AT\n                     CHANDIGARH\n\n                       C.E.A. No. 40 of 2009\n\n             DATE OF DECISION: February 25, 2009\n\nCommissioner of Central Excise Commissionerate, Ludhiana\n\n                                                         ...Appellant\n\n                               Versus\n\nM\/s Fas Kusum Ispat (P) Ltd. and another\n\n                                                      ...Respondents\n\nCORAM: HON'BLE MR. JUSTICE M.M. KUMAR\n\n            HON'BLE MR. JUSTICE H.S. BHALLA\n\nPresent:    Mr. Heman Aggarwal, Advocate,\n            for the appellant.\n\n1.    Whether Reporters of local papers may be\n      allowed to see the judgment?\n2.    To be referred to the Reporters or not?\n3.    Whether the judgment should be reported in\n      the Digest?\n\n\nM.M. KUMAR, J.\n<\/pre>\n<p id=\"p_1\">            The revenue has approached this Court by filing the<\/p>\n<p>instant appeal under <a href=\"\/doc\/54762929\/\" id=\"a_1\">Section 35-G<\/a> of the Central Excise Act, 1944<\/p>\n<p>(for brevity, &#8216;the Act&#8217;) by challenging order dated 27.2.2008, passed<\/p>\n<p>by the Custom, Excise and Service Tax Appellate Tribunal, Principal<\/p>\n<p>Bench, New Delhi (for brevity, &#8216;the Tribunal&#8217;).\n<\/p>\n<p id=\"p_1\">2.          The basic requirement for attracting the provisions of<\/p>\n<p><a href=\"\/doc\/92590795\/\" id=\"a_1\">Section 11AC<\/a> of the Act is that there has to be intention to evade the<\/p>\n<p>payment of Excise duty. In the present case, a categorical finding has<\/p>\n<p>been recorded by the Tribunal that such an intention cannot be<br \/>\n<span class=\"hidden_text\" id=\"span_1\"> C.E.A. No. 40 of 2009                                               2<\/span><\/p>\n<p>presumed because the shortage which was detected during stock<\/p>\n<p>verification stood explained. As per the statement of the Director, the<\/p>\n<p>day-to-day affairs of the company were not being looked after by him<\/p>\n<p>and, therefore, he was not able to explain the shortage. The Tribunal<\/p>\n<p>has further recorded a finding that there is no material to support the<\/p>\n<p>clandestine removal of inputs. Once the aforementioned findings of<\/p>\n<p>fact are there then it is not possible to apply the provisions of <a href=\"\/doc\/92590795\/\" id=\"a_2\">Section<\/p>\n<p>11AC<\/a> of the Act so as to impose penalty.\n<\/p>\n<p id=\"p_2\">3.           Mr. Hemen Aggarwal, learned counsel for the appellant<\/p>\n<p>has, however, pointed out that the judgment on which reliance has<\/p>\n<p>been placed by the Tribunal in the case of <a href=\"\/doc\/1644775\/\" id=\"a_3\">CCE v. S.K. Sacks Pvt.<\/p>\n<p>Ltd. (CEA No<\/a>. 154 of 2006, decided on 22.1.2008) and the<\/p>\n<p>judgment in the case of <a href=\"\/doc\/549094\/\" id=\"a_4\">CCE v. Machino Montel (P) Ltd<\/a>., 2004 (62)<\/p>\n<p>RLT 709 rendered by this Court have been overruled.               In the<\/p>\n<p>aforesaid judgments the question which has been decided was<\/p>\n<p>whether deposit of duty before issuance of show cause notice would<\/p>\n<p>blunt the finding that there was intention to evade the duty. However,<\/p>\n<p>in the present case, the Tribunal has given categorical finding that<\/p>\n<p>there was no clandestine removal of inputs and the shortage could not<\/p>\n<p>be explained by the Director for the reason that he was not dealing<\/p>\n<p>with the affairs of the company on day-to-day basis. Therefore, the<\/p>\n<p>judgments in the aforesaid cases would not affect the merit of the<\/p>\n<p>controversy once the substantive findings are against the appellant.<\/p>\n<p>No question of law warranting admission of the appeal would arise.<\/p>\n<p>Accordingly, the appeal fails and the same is dismissed.<br \/>\n<span class=\"hidden_text\" id=\"span_1\"> C.E.A. No. 40 of 2009                                           3<\/span><\/p>\n<p id=\"p_3\">4.          For the reason that the appeal itself has been dismissed<\/p>\n<p>on merit, we do not feel any necessity to pass any order on the<\/p>\n<p>application filed under Section 149 C.P.C. for making good the<\/p>\n<p>deficiency of Court fee as well as application under <a href=\"\/doc\/100581\/\" id=\"a_5\">Section 5<\/a> of the<\/p>\n<p>Limitation Act for condonation of delay of 127 days in filing of the<\/p>\n<p>appeal.<\/p>\n<pre id=\"pre_1\">\n\n\n\n                                            (M.M. KUMAR)\n                                               JUDGE\n\n\n\n\n                                            (H.S. BHALLA)\nFebruary 25, 2009                               JUDGE\nPkapoor\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Commissioner Of Central Excise &#8230; vs M\/S Fas Kusum Ispat (P) Ltd. And &#8230; on 25 February, 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.E.A. No. 40 of 2009 DATE OF DECISION: February 25, 2009 Commissioner of Central Excise Commissionerate, Ludhiana &#8230;Appellant Versus M\/s Fas Kusum Ispat (P) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-269058","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Central Excise ... vs M\/S Fas Kusum Ispat (P) Ltd. 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