2010 (7) TMI 434 - HC - Central Excise

Penalty - reduced to 25% of the duty if the respondent makes payment of duty interest and penalty within 30 days of the communication of the order - no contention had been raised on behalf of the respondent assessee qua the quantum of penalty Held that - amount of duty along with interest and penalty had not been paid within a period of thirty days of the Order-In-Original the Tribunal could not have granted the benefit of reduced amount of penalty

Summary

Issues:
Challenge to order of Customs, Excise and Service Tax Appellate Tribunal regarding reduction of penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:
The appellant revenue contested the order of the Tribunal which directed the reduction of penalty to 25% of the duty amount if payment was made within 30 days. The appellant argued that the Tribunal's order was non-speaking as no contention was raised by the respondent regarding the penalty amount. The appellant highlighted that the duty, interest, and penalty were not paid within 30 days, and thus, the benefit of reduced penalty should not have been granted. However, the Tribunal's decision was in line with a previous judgment of the High Court, and it was deemed legally sound, leading to the dismissal of the appeal.

Conclusion:
The High Court dismissed the appeal as there was no substantial question of law raised. The Tribunal's decision to reduce the penalty to 25% of the duty amount if payment was made within 30 days was upheld, citing alignment with a previous High Court judgment. The appellant's argument regarding the non-speaking nature of the Tribunal's order and the absence of a raised contention on penalty amount were not deemed sufficient to overturn the Tribunal's decision.