Assessee couldn’t demand notice for increasing penalty when

By | August 19, 2015
(Last Updated On: August 19, 2015)

Assessee couldn’t demand notice for increasing penalty when when he didn’t appear in proceedings

Q Assessee did not appear before tribunal despite notice of revenue appeal . Can he claim that Tribunal should have issued another notice prior to enhancement of penalty ?

Where assessee did not appear before Tribunal despite notice of revenue’s appeal, assessee cannot complain of lack of further notice prior to enhancement of penalty

HIGH COURT OF MADRAS

Musthafa Ahamed Umar Dossa

v.

CEGAT, Chennai

R. SUDHAKAR AND R. KARUPPIAH, JJ.

C.M.A. NO. 1908 OF 2007

DECEMBER  4, 2014

Section 129B of the Customs Act, 1962, section 86 of the Finance Act, 1994 and section 35C of the Central Excise Act, 1944

 Appeals  of Rectification of mistakes/review before Appellate Tribunal

Facts of the Case:

In matter of appeal filed by Revenue, assessee did not appear before Tribunal despite notice.

Tribunal enhanced penalty considering Revenue’s appeal .

Assessee claimed that Tribunal should have issued another notice prior to enhancement of penalty, as provided in section 129B(2) (section 35C(2) of Excise Act)

 HELD [In favour of revenue]

Tribunal recorded that though notice was issued, assessee did not appear; hence, assessee cannot now claim that no notice was issued by Tribunal before an order of enhancement was passed.

Moreover, section 129B(2) was inapplicable, as same deals with rectification of mistakes; while, in this case, Tribunal was hearing main appeal [Paras 5.3 and 6.3]

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