Case Law Details
Monohar Lal Agarwala Vs Commissioner of CE & ST (CESTAT Kolkata)
Introduction: The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata recently dealt with an appeal filed by a Chartered Accountant (CA), Shri Manohar Lal Agarwal. The appeal challenged the penalty of Rs. 50,000 imposed on the CA under Rule 26 of the Central Excise Rules, 2002, by the Commissioner of Central Excise & Service Tax, Dibrugarh. The penalty was imposed based on allegations related to the issuance of a certificate and its subsequent use by another party. In this article, we will explore the details of the case and the CESTAT’s decision.
Detailed Analysis:
1. Background: Shri Manohar Lal Agarwal, a registered Chartered Accountant, had issued a certificate related to the value of plant and machinery for M/s. Kitply Industries. The certificate was issued after examining the relevant records and was dated March 31, 2005.
2. Show Cause Notice: A show cause notice was issued on July 4, 2011, to M/s. Kitply Industries Ltd, Assam. In this notice, Shri Manohar Lal Agarwal was also included as Noticee No.5. The notice alleged that the CA had issued a certificate without examining the books of accounts of M/s. Kitply Industries, and this certificate was used by the company to claim an ineligible exemption under Notification 20/2007-CE dated April 20, 2007. Consequently, a penalty under Rule 26 was proposed for Shri Manohar Lal Agarwal.
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