Order Date – 22 February 2024

Parties: M/s Vinayak Industries Vs Commissioner of Central Excise & Customs, Jammu

Facts –

• The Appellant, M/s Vinayak Industries, are engaged in the manufacture of ‘Tin Containers’. During the course of internal audit conducted by the Department, it was found that the appellant have not filed returns namely ER-4, ER-5, ER-6 and ER-7 for the period from February 2012 to March 2016.
• Accordingly, a show cause notice was issued to the appellant on 23.04.2018 proposing to impose penalties. After following the due process, the Adjudicating Authority confirmed the demand of penalties.

Issue –

• Whether the imposition of penalty for non filing returns are proper?

Order –

• The Tribunal observed that in the present case the period involved is February 2012 to March 2016, whereas the show cause notice was issued on 23.04.2018 which is beyond the period of limitation. In fact, neither in the show cause notice nor in the impugned order, the grounds for invoking the extended period of limitation have been discussed.
• Nothing emerges from the impugned order that the appellant have not filed the requisite returns with intent to evade the payment of tax. Hence it was held that the imposition of penalties is not sustainable and the appeal is allowed.