2000 (8) TMI 751 - AT - Central Excise

Summary

Issues:
Appeal against duty demand, penalty imposition, and penal proceedings.

Analysis:
The appeal was filed by the Revenue after a Review Order confirmed duty demand and imposed a penalty on M/s. G.M.I. Engineering Ltd. The allegations included removal of goods without payment of central excise duty and clandestine removal of goods evading duty during 1993-94 and 1994-95. The adjudicating authority accepted explanations for goods removed to the registered office due to theft and refrained from ordering confiscation. Regarding clandestine removals, the respondent pleaded ignorance of law, accepted duty liability, and deposited a significant amount. The authority considered this as rectification of mistake and showed leniency in penalty imposition. No penalty was imposed on the Managing Director due to lack of evidence of mala fide intention.

The Revenue argued for a higher penalty due to the respondent being a habitual evader and the substantial duty evaded. However, the Tribunal found the penalty imposed to be justified at 8.28% of the duty evaded, with convincing reasons provided by the adjudicating authority. The Tribunal emphasized that penalties should be proportionate to the gravity of the offense and considered mitigating circumstances. The Tribunal rejected the Revenue's appeal, stating that the penalty imposed was appropriate and did not warrant interference.

The Tribunal highlighted the authority's discretion in determining penalties, subject to being proportionate to the offense and considering mitigating factors. The Tribunal advised caution and restraint in reviewing authorities exercising power over penalty imposition. Ultimately, the Tribunal found no merit in the Revenue's appeal and rejected it.