2007 (9) TMI 122 - AT - Central Excise

Enhancement of penalty without issuing notice under first proviso to Sec. 35A is not accordance with law Moreover, duty involved in the matter has been paid and penalty imposed by original authority have been discharged Impugned order is violating Sec. 35A, hence set aside

Summary

The Appellate Tribunal CESTAT, Kolkata held that the penalty cannot be enhanced under the first proviso to Section 35A of the Central Excise Act without issuing a notice to the appellant. The appellant had paid the duty and penalty imposed by the original authority. The impugned order was deemed unsustainable as the appellant was not given a fair opportunity. The appellant succeeded in the case.