2007 (5) TMI 532 - AT - Central Excise

Summary

Issues:
Appeal against penalty imposition upheld by Order-in-Appeal - Reduction of penalty amount from Rs. 46,369 to Rs. 5,000.

Analysis:
The appeal in question was directed against Order-in-Appeal No. BPS(321)89/2004, which had confirmed the penalty of Rs. 46,369 imposed on the appellant. Despite the absence of the appellant during the proceedings, the Tribunal proceeded with the appeal's disposal. The issue revolved around the duty liability of the appellant under the Compounded Levy Scheme, based on the Annual Capacity of Production. The appellant had contested the duty liability measures, leading to a legal battle taken to the Hon'ble Supreme Court. However, upon losing the case, the appellant discharged the duty liability as determined by the authorities. It was noted that although there was no dispute regarding the Annual Production Capacity, the timing of the duty discharge was unclear from the records. The Tribunal found that the appellant had paid a significant portion of the duty liability on time, with the remaining amount also being paid later along with interest. Considering these circumstances, the Tribunal opined that imposing a penalty equal to the outstanding duty was unwarranted. The Tribunal, following its consistent approach, reduced the penalty to a nominal amount of Rs. 5,000, deeming it sufficient for the interests of justice. Consequently, the impugned order was modified, reducing the penalty from Rs. 46,369 to Rs. 5,000, thereby partially allowing the appeal.