2010 (3) TMI 1197 - AT - Central Excise

Summary

Issues Involved: The issues involved in the judgment are the applicability of proviso to Section 11AC of the Central Excise Act, 1944 and the penalty imposed on the Director.

Applicability of Proviso to Section 11AC:
The appellants challenged the order of the Tribunal, which was remanded by the Hon'ble Gujarat High Court for fresh orders considering the applicability of the proviso to Section 11AC. The learned advocate argued that the option to pay duty, interest, and 25% of the duty amount towards penalty within 30 days was not given by the lower authorities. It was acknowledged by the learned DR that such an option should have been provided as per the proviso to Section 11AC. Citing precedents, including the case of M/s. Swati Chemicals Industries & Others and the decision of the Hon'ble Gujarat High Court in the case of CCE Ahmedabad vs. M/s. Akash Fashion Prints Pvt. Limited, the Tribunal granted the appellants the option to deposit the required amounts within 30 days from the receipt of the order. Failure to comply would result in the appellants being liable to pay 100% of the duty demand towards penalty.

Penalty Imposed on Director:
The Tribunal determined that since Section 11AC of the Central Excise Act, 1944 was not applicable, there was no need to reconsider the issue of the penalty imposed on the Director. This decision was made based on the specific legal provisions and considerations related to the case.

Separate Judgement by Judges: No separate judgment was delivered by the judges in this case.