2007 (2) TMI 462 - AT - Central Excise

Summary

Issues: Appeal against reduction of redemption fines and penalties under Rule 173Q and Rule 209A.

Redemption Fines: The Revenue challenged the reduction of redemption fines from Rs. 30,500/- and Rs. 40,000/- to Rs. 10,000/- each for seizures made on specific dates. The Appellate Authority exercised discretionary power to reduce fines, considering the nexus with the market value of the confiscated goods. The Revenue did not contest this nexus, leading to the affirmation of the reduced fines.

Penalties under Rule 173Q: Penalties imposed on the appellant were reduced to Rs. 2,000/- from Rs. 10,000/- and Rs. 30,000/- by the adjudicating authority. However, Rule 173Q(1) mandates a minimum penalty of Rs. 5,000/-. Previous decisions highlighted conflicting views on the interpretation of this rule. The Tribunal clarified that the minimum penalty under Rule 173Q is Rs. 5,000/-, aligning with the decision in Bharat Petroleum Corporation Ltd. Contrary decisions were deemed no longer valid. Consequently, the penalties were modified to Rs. 5,000/- on each count, overturning the Commissioner (Appeals) decision to impose lower penalties.

Rule 209A: The appeal against the partner of the firm was dismissed as the contraventions alleged were not covered by Rule 209A, which pertains to abetment through dealing with goods liable for confiscation. The Appellate Commissioner found no valid reason to deviate from this interpretation, leading to the dismissal of the Revenue's appeal.

In conclusion, the appeal against the partner was dismissed, while the appeal against the firm was partly allowed, resulting in modified penalties in accordance with Rule 173Q.