Sona Processors India Pvt. Ltd., v. Union of India and Ors.
Case brief
What is this about?
Two-connected- writ/petitions challenged a penalty of Rs 1,15,14,516 reduced to Rs 5 lakh by CESTAT under Rule 96ZQ(5)(ii) of Central Excise Rules, struck down in 2016 for mandatory penalties. Court allowed writ petition and quashed penalty.
What did the court decide?
Writ petition allowed; appeal dismissed; penalty of Rs 1,15,14,516 levied quashed.
What the court decided
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
D.B. Civil Writ No. 7418/2014
Sona Processors India Pvt. Ltd., Chittor Road, Village Guwardi, Bhilwara, Rajasthan
Through its Executive Director Shri Naresh Kumar Gattani S/o Late Shri Ladulal Gattani, Aged 47 years, Resident of 3, Main Sector, Shastri Nagar, Bhilwara.
----Petitioner
Versus
- Union Of India, through Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi – 110001.
- The Central Board of Excise & Customs, Ministry of Finance, Department of Revenue, North Block, New Delhi – 110001.
- Customs, Excise and Service Tax Appellate Tribunal Principal Bench, West Block No.2, RK Puram, New Delhi – 110066.
- Commissioner of Central Excise, Jaipur – I, NCR Building, Statue Circle, “C” Scheme, Jaipur.
- Additional Commission Central Excise NCR Building, Statue Circle, “C” Scheme, Jaipur.
Issues for consideration
3 issues framed by the court
Whether penalty levied under Rule 96ZQ(5)(ii) of Central Excise Rules can be reduced by CESTAT after the Rule was struck down.
Whether a challenge restricted to penalty amount alone justifies dismissal of appeal and allowance of writ petition.
Whether penalty levied under a void Rule mandates continuance despite CESTAT reduction.
Parties & counsel
- petitioner
Sona Processors India Pvt. Ltd.
- respondent
Union Of India
- respondent
Central Board of Excise & Customs
- respondent
Commissioners of Central Excise
Coram
Case details
As recorded by the court registry
- Court
- Rajasthan HC
- Decided on
- · December
- Registered
- Case no.
- CW/7418/2014
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