2004 (1) TMI 458 - AT - Central Excise

Summary

Issues: Appeal against penalty aspect; Reduction of penalty amount

In this case, the appellant filed an appeal against the impugned order-in-appeal, specifically contesting the penalty aspect while not contesting the confirmation of duty amounting to Rs. 1,45,194. The learned Counsel argued for a substantial reduction in the penalty imposed, highlighting that the appellants voluntarily informed the Department about crossing the exemption limit and paid the duty for the disputed period. On the other hand, the learned SDR supported the penalty amount, emphasizing that the appellants proactively disclosed the duty liability to avoid detection by Anti-evasion Officers. The Tribunal noted that the appellants initially availed SSI exemption but voluntarily disclosed the duty liability before the enactment of Section 11AC for the relevant period. Considering the appellants' proactive conduct and the circumstances, the Tribunal accepted the Counsel's prayer and reduced the penalty to Rs. 25,000. The impugned order was upheld with the modification in the penalty amount. The appeal was disposed of accordingly.