2009 (1) TMI 690 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, AHMEDABAD, in the 2009 case of 2009 (1) TMI 690 - CESTAT, AHMEDABAD, heard an appeal filed by the Revenue against a decision by the Commissioner (Appeals) regarding the penalty under Section 11AC. The Commissioner (Appeals) determined that the penalty could be 25% of the duty amount if paid within 30 days of the order-in-appeal. The Commissioner (Appeals) held that Sections 11AC and 35F should be interpreted harmoniously, allowing for the payment of penalty at a reduced rate if an appeal is heard without pre-deposit of duty and penalty. The Tribunal agreed with the Commissioner (Appeals) and rejected the appeal filed by the Revenue. The judgment referenced a previous case involving a similar issue, providing further support for the decision. The appellant firm was eligible for the penalty reduction provided both penalty and interest were paid within 30 days of receipt of the Order-in-Appeal. The ruling emphasized the need for a harmonious interpretation of the relevant sections and cited a judgment from the Delhi High Court in support of this approach. The decision highlights the importance of understanding and applying the provisions of Sections 11AC and 35F in conjunction to ensure a fair and balanced resolution of penalty issues.