2014 (1) TMI 570 - AT - Central Excise

Excess Penalty of 100% imposed u/s 11AC 25% penalty already paid Held that - Further deposit of penalty waived and the amount stayed till the disposal Stay granted.

Summary

Issues: Imposition of penalty under Section 11AC of the Act, waiver of pre-deposit of penalty, definition of specified records under Section 11AC.

Imposition of Penalty under Section 11AC of the Act:
The Appellant contended that the Commissioner (Appeals) imposed a 100% penalty under Section 11AC, despite the deposit of 25% of the penalty amount. The Appellant had already paid Rs. 32,432, which was appropriated against a Bank Guarantee, and deposited the balance of Rs. 82,335 via TR-6 challan. The Commissioner (Appeals) discussed the penalty imposition separately for gas parts and gas burners, focusing on the lack of specified records for gas burners. The Appellant failed to maintain the required records for the gas burners cleared at their unit. Upon review, the Tribunal appreciated the facts and the Commissioner (Appeals)'s order. The Appellant's counsel requested a further waiver of the pre-deposit of penalty.

Waiver of Pre-deposit of Penalty:
The Appellant's counsel requested a further waiver of the pre-deposit of penalty. The Joint Commissioner of Central Excise took issue with the lack of specified records for challans issued from the Sahibabad unit, as required under Section 11AC of the Act. The counsel argued that the records maintained for Sales Tax purposes should be considered specified records under the Act. After considering the submissions and records from both sides, the Tribunal decided to waive the further deposit of penalty and granted a stay on the penalty until the appeal's disposal.

Definition of Specified Records under Section 11AC:
The Joint Commissioner argued that the challans issued from the Sahibabad unit were not specified records as required under Section 11AC of the Act. The Appellant's counsel contended that the records maintained for Sales Tax purposes should be considered specified records under the Act. The Tribunal, after reviewing the arguments and submissions, decided to waive the further deposit of penalty and granted a stay on the penalty until the appeal's final disposal.

This judgment from the Appellate Tribunal CESTAT New Delhi addressed issues related to the imposition of penalty under Section 11AC of the Act, the waiver of pre-deposit of penalty, and the definition of specified records under the Act. The Tribunal considered the Appellant's compliance with penalty payments, the lack of specified records for gas burners, and the argument regarding Sales Tax records as specified records under the Act. Ultimately, the Tribunal waived the further deposit of penalty and granted a stay on the penalty until the appeal's final disposal.