2009 (3) TMI 713 - AT - Central Excise

Summary

Issues involved: Determination of duty amounts, penalties imposed under various provisions of law, payments made by the appellants, contesting penalties under different sections and rules, reduction of penalties, confirmation of penalties imposed by the Commissioner.

Duty Amounts and Payments:
The appellants, M/s. Subham Polymers Ltd. and M/s. Manawat Plastics Pvt. Ltd., were directed to pay the balance duty of Rs. 1,13,517/- out of the total duty amount of Rs. 2,52,553/-. Payments totaling Rs. 1,39,036/- were already made during the investigations, with an additional Rs. 50,000/- paid as per the order of CEGAT.

Contesting Penalties:
The learned Consultant representing the appellants contended that they are not contesting the duty but are willing to pay the remaining amount. He argued for setting aside penalties imposed under Rule 173Q where penalties were also imposed under Section 11AC. Reduction of penalties under Rule 173Q and leniency for penalties on M/s. Manawat Plastics Pvt. Ltd. under Rule 209 were requested.

Confirmation of Penalties:
The learned SDR sought confirmation of the penalties imposed by the Commissioner, while the appellants argued for reduction and setting aside of certain penalties based on legal precedents and leniency considerations.

Reduction and Setting Aside of Penalties:
Upon examination, it was found that the cumulative penalty of Rs. 5,25,606/- imposed on M/s. Subham Polymers Ltd. was excessive. Penalties under Rule 173Q were set aside where penalties under Section 11AC were already imposed. Penalties solely under Rule 173Q were reduced significantly, considering the absence of duty involvement. Penalties on M/s. Manawat Plastics Pvt. Ltd. under Rule 209 were also reduced based on the circumstances of the case.

Conclusion:
After considering the arguments and circumstances, the penalties imposed on the appellants were partially allowed, with reductions and setting aside of certain penalties as per the findings.