2008 (1) TMI 41 - AT - Central Excise

Demand - Revenue s appeal against the order of Commissioner(A) vide which imposed personal penalty and confirmed the demand Tribunal doesn t found any error in the decision and set aside revenue appeal

Summary

Issues:
Interpretation of law regarding imposition of personal penalty and duty on "waste and rejects" cleared by the respondent.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD involved an appeal by the Revenue against the imposition of a personal penalty and duty on "waste and rejects" cleared by the respondent. The Commissioner (Appeals) had imposed a personal penalty of Rs.2 lakhs on the respondent while confirming the demand of duty amounting to Rs.43,54,647. The duty was confirmed against the appellant for clearing "waste and rejects" in DTA by paying duty at 8% in relation to the duty of Excise, equal to the aggregate of all Customs duty under Section 3 of the Central Excise Act, 1944.

The main issue in this case was the interpretation of the law. It was noted that the goods had been cleared by the respondent after paying the duty, and there was no malafide intent involved on the part of the respondent. The Commissioner's decision to impose a lower quantum of penalty was considered justified in light of these circumstances. The Tribunal found no merit in the appeal filed by the Revenue and consequently rejected it.

In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) regarding the imposition of the penalty and duty on the "waste and rejects" cleared by the respondent. The judgment highlighted the importance of interpreting the law correctly in such cases and considering factors like payment of duty and absence of malafide intent in determining the appropriate penalty.