2006 (6) TMI 237 - AT - Central Excise

Summary

Issues: Refund of duty paid twice, Reduction in penalty amount

The judgment addresses the issue of refund of duty paid twice by the appellants. The appellants utilized the Credit available during a specific period to make duty payments for the preceding fortnights. The learned Advocate for the appellants acknowledged the error, stating it was due to confusion and ignorance. The appellants paid the amounts twice, first from the RG-23A, Part-II Account and then from the P.L.A. The Tribunal found that the appellants are entitled to a refund of the amounts paid from the RG-23A Part-II Account, as they had already paid the amounts from the P.L.A. The Tribunal ordered the refund accordingly.

Regarding the penalty amount, the Tribunal considered the argument that the penalty imposed was excessive. The appellants had paid the amounts twice with interest, neutralizing any pecuniary advantage gained. The Tribunal acknowledged that although some penalty was justified due to the rule infringement, the excessive penalty was unwarranted. Consequently, the penalty was reduced to Rs.10,000.00. The Tribunal allowed the appeal in light of the reduced penalty amount, considering the circumstances and actions taken by the appellants to rectify the error.

In conclusion, the judgment by the Appellate Tribunal CESTAT, KOLKATA, under the representation of the Advocate for the Appellant and the JDR for the Respondent, focused on the refund of duty paid twice and the reduction in the penalty amount. The Tribunal recognized the error made by the appellants, leading to the double payment of duty, and granted the refund from the RG-23A Part-II Account. Additionally, the Tribunal adjusted the penalty amount, reducing it to Rs.10,000.00, considering the payment made by the appellants along with interest. The judgment highlights the importance of rectifying mistakes promptly and the Tribunal's discretion in adjusting penalties based on the circumstances of each case.