2009 (6) TMI 859 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, New Delhi heard an appeal by the Revenue against a penalty imposed under Section 11AC on a company engaged in manufacturing conductors. The company was found with a shortage of raw materials involving Central Excise Duty, which was paid before a show cause notice was issued. The Assistant Commissioner confirmed the duty demand and imposed a penalty. On appeal, the penalty on the company was reduced to 25% due to the early payment of duty. The Revenue challenged this reduction, arguing that the penalty conditions were not met. The Respondent contended that the duty was paid promptly and cited relevant judgments. The Tribunal found that the duty was paid promptly and that the penalty reduction was justified under the circumstances, citing applicable court judgments. The Revenue's appeal was dismissed, upholding the penalty reduction decision.