2009 (7) TMI 985 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, Ahmedabad, 2009 (7) TMI 985 - CESTAT, Ahmedabad, was presided over by Ms. Archana Wadhwa. The case involved the remanding of a matter by the Hon'ble High Court of Gujarat for a fresh decision on the quantum of penalty, following the Hon'ble Supreme Court's judgment in Union of India v. Dharamendra Textile Processors. The Original Adjudicating Authority confirmed duty of Rs. 2,58,295 against the appellant for clandestine removal and imposed a penalty of the same amount. The Commissioner (Appeals) upheld the duty and penalty, which was further challenged before the Tribunal. The Primeakt Tribunal upheld the duty confirmation but reduced the penalty to Rs. 20,000 considering the circumstances. However, following the Supreme Court's judgment in M/s. Dharamendra Textile Processors, the penalty was increased to the duty amount of Rs. 2,58,295. The Tribunal also considered the Provisos to Section 11AC, allowing the assessee to pay reduced penalty if the duty and interest are paid within thirty days of the order. The penalty was ultimately enhanced to the duty amount, but the assessee was given the option to deposit the entire dues along with 25% interest of the penalty within thirty days to restrict the penalty to 25% of the duty amount. The Revenue's appeal was disposed of accordingly.