2008 (9) TMI 728 - AT - Central Excise

Penalty - Quantum of - Review by Tribunal - Rectification of mistake - Held that - this is a case which involves interest-liability on the duty evaded. There is no evidence on record that the Appellants paid the interest amount within the required time of one month from the date of issue of the impugned Order - there is no mistake apparent from record and in any case, no review of the-Tribunal s Order is permissible through a Miscellaneous Application for rectification of mistake - rectification of mistake application dismissed being not maintainable.

Summary

Issues:
Rectification of mistake in penalty amount reduction based on cited case laws.

Analysis:
The appellant sought a reduction in the penalty amount to 25% of the duty leviable based on two cited decisions. The first and second provisos to Section 11AC were examined. The first proviso allows for a reduced penalty if duty and interest are paid within thirty days, while the second proviso requires the reduced penalty to also be paid within the same period.

The cited cases from the Delhi High Court did not address interest payment, unlike the present case where interest was directed to be paid. The duty evasion occurred before the search operation, and payments were made later, incurring interest liability. The tribunal found no evidence that interest was paid within the required time from the impugned Order. Consequently, the benefit of the cited decisions could not be extended to the appellant. The tribunal also noted that the earlier order was based on the available records and arguments, finding no mistake in it. Therefore, the Miscellaneous Application for rectification of mistake was deemed not maintainable, and the appeal was dismissed.

In conclusion, the tribunal dismissed the Miscellaneous Application as not maintainable, emphasizing that no mistake was apparent from the records, and a review of the tribunal's order was not permissible through such an application. The judgment was pronounced on 1-9-2008.