2005 (2) TMI 702 - AT - Central Excise

Summary

Issues: Duty demand confirmation, Penalty reduction

Duty Demand Confirmation:
The appeal was filed against the order-in-appeal confirming duty demand and penalty of Rs. 33,603 against the appellants. The appellants, registered as 100% EOU under LOP for manufacturing and exporting Cut Flowers, failed to implement the project within the validity period of LOP, which expired on 25-4-1998. Consequently, they were not entitled to avail the benefits of Notification No. 136/94 and the concession of 100% EOU. The duty was rightly confirmed due to their failure to fulfill the export conditions within the prescribed LOP period. The learned counsel did not challenge the impugned order on merits, acknowledging the appellants' ineligibility for the concessions.

Penalty Reduction:
Despite upholding the duty demand confirmation, the tribunal deemed it appropriate to reduce the penalty considering the facts and circumstances of the case. The penalty was reduced from Rs. 33,603 to Rs. 5,000. The tribunal found that while the duty confirmation was justified, a reduction in the penalty amount was warranted based on the specific circumstances presented. With this modification in the penalty amount, the tribunal upheld the impugned order, disposing of the appeal accordingly. The operative part of the order was pronounced in open court on 24-2-2005.