Default of duty = Rs.7235; Penalty=Rs. 1,70,000
WE came across an interesting case in the Chennai CESTAT recently.
A Show Cause Notice was issued on 14.12.2000. A corrigendum was issued on 17.1.2002. 11 years after issue of Show Cause Notice, it was adjudicated on 15.4.2011. Default of payment of duty was Rs. 7235 and penalty imposed under Rule 173GG was Rs. 1,70,000. It seems there was no proposal in the show-cause notice for imposition of penalty under Rule 173GG of Central Excise Rules.
The CESTAT had no hesitation in setting aside the penalty.
See
Until Tomorrow with more DDT
Have a nice day.
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