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2011 (7) TMI 310 - AT - Central ExciseDemand - Demand of duty of Rs. 2,26,077/- confirmed against the manufacturing unit, stands paid by them along with interest and penalty to the extent of 25% imposed upon them - Revenue, contended that there is no provisions under the law for adopting the criteria of reducing penalty to 25%,find that the main manufacturer having been deposited the entire duty along with interest and 25% of penalty, reduction in penalties imposed upon the present appellants is called for in the interest of justice - Accordingly, reduce the penalties imposed on the all the appellants to 25% of penalties imposed by the lower authorities.
Issues: Compliance with stay order, confirmation of duty demand, imposition of penalty, reduction of penalties.
Compliance with Stay Order: All three appellants complied with the stay order directing them to deposit 25% of the penalties imposed. They also requested the disposal of appeals on merits. Confirmation of Duty Demand and Imposition of Penalty: The lower authorities confirmed a duty demand of Rs. 2,26,077 against M/s. Galaxy Glass Industries for clandestine removal, along with interest and an identical penalty amount. The manufacturing unit, M/s. Galaxy Glass Industries, paid the entire duty, interest, and 25% of the penalty. The present appellants, partners and directors of the unit, purchased the clandestinely manufactured goods. Penalties were imposed on the partners and directors individually. Reduction of Penalties: The appellants sought a reduction in the penalties to 25% of the amounts imposed by the lower authorities. While acknowledging that there is no legal provision for such reduction, the judge found it just to reduce the penalties imposed on the appellants to 25% of the original amounts. This decision was made in the interest of justice, considering that the main manufacturer had already paid the entire duty, interest, and 25% of the penalty. Consequently, all the appeals were disposed of with the reduced penalties for the appellants.
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