2010 (6) TMI 842 - AT - Customs

Summary

Issues involved: Confirmation of duty on clandestine removal of raw material, imposition of penalty, extension of option to pay penalty amount.

The judgment by Appellate Tribunal CESTAT AHMEDABAD, delivered by Archana Wadhwa, addressed the issue of confirming a duty of Rs. 4,28,439 on the findings of clandestine removal of duty-free procured raw material by the 100% EOU unit of the appellant. The appellant did not dispute this confirmation. The judgment also dealt with the imposition of a penalty to the extent of 100%, as per the decision of the Hon'ble Supreme Court in the case of Dharmendra Textile Processors. However, the appellant contended that the Assistant Commissioner and the Commissioner (Appeals) did not provide the option to pay 25% of the penalty amount within 30 days from the date of communication of the order, as per the proviso to Section 11AC. Citing a previous case, the appellant requested the Tribunal to extend this option. The learned SDR did not object to this plea, and in line with the law declared in the case of Swati Chemicals, the Tribunal upheld the imposition of penalty at 100% but extended the option to the appellant to deposit 25% of the penalty amount within 30 days, resulting in a reduction of the penalty to 25% of the total amount. Consequently, the appeal was disposed of based on the above terms.