9911796707
TMI Blog2010 (3) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... in reducing the mandatory penalty imposed under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 on the ground that the confirmed duty was deposited before issuance of the show cause notice." 2. The respondent assessee is engaged in the manufacture of processed man-made fabrics. Pursuant to search carried out by the Central Excise officers, a show-cause notice came to be issued on 18th March, 2005 as to why Central Excise duty amounting to Rs. 4,96,097/- should not be recovered under the proviso to sub-section (1) of Section 11A of the Central Excise Act, 1944 (the Act) as well as interest under Section 11AB and penalty under Section 11AC of the Act should not be imposed. It is an undis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ten Thousand only) on four merchant manufacturers viz. (i) M/s. Jayesh Silk Mills, Adhinath market, ground floor, Ring road, Surat, (ii) M/s. Shree Hareram Textile, 6/1871, Bali share, Mahidarpura, Surat (iii) M/s. Shree Shanker Textile, 6/1871, Balishel, Mahidarpura, Surat and (iv) M/s. S. Narayan Silk Mills, 6/2507, Limbusheri, Mahedarpura, Surat." 3. The respondent carried the matter in appeal before the Commissioner (Appeals) who confirmed the order of the adjudicating authority insofar as duty, interest and penalty are concerned but set aside the penalty imposed on the partners of the respondent assessee. The respondent assessee carried the matter in further appeal before the Customs Excise and Service Tax Appellate Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed equal to the duty determined under sub-section (2) of Section 11A. It was submitted that the Tribunal while reducing the penalty to 25% of the duty amount instead of the mandatory penalty equivalent to the duty amount has not considered the fact that in the present case, the respondents had not availed of the first and second proviso to Section 11AC, namely payment of duty and interest within a period of 30 days from the communication of the order of Central Excise officer determining such duty; and payment of the penalty so determined within the period of 30 days referred to in the said proviso. It was submitted that the order passed by the Tribunal reducing the mandatory penalty under Section 11AC was not justified as there was no disc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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