2018 (9) TMI 6 - AT - Central Excise

Penalty - Clandestine removal - Held that - Considering the lapse of time since the occurrence of the offence and the law itself being history row, the interest of justice will be best served by reducing the penalty to ₹ 5,00,000/- - appeal allowed in part.

Summary

Issues: Quashing of penalty imposed on appellant

Analysis:
The appellant, a partner of a company, sought the quashing of a penalty of ?40,00,000 imposed on him by the Commissioner of Central Excise. The Tribunal had previously remanded the matter to reconsider the penalty along with re-quantifying the duty liability. The duty liability was reduced to ?50,70,598, and the penalty was reduced to ?40,00,000. The appellant argued that the penalty was disproportionate to the offense and the duty liability. He also highlighted that the company was no longer operational, and he was facing physical and financial difficulties.

The Authorized Representative opposed the appellant's plea, stating that the appellant and the company were involved in clandestine removal, indicating a significant role in the offense. However, the representative was unsure if the duty liability had been fully recovered.

Considering the circumstances, including the time elapsed since the offense and the evolving legal landscape, the Tribunal decided to reduce the penalty to ?5,00,000, finding it to be in the interest of justice. The appeal was allowed to that extent.