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TMI Blog2015 (10) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 were merchant manufacturers, supplied grey fabric to the Appellant No. 1, where the penalty under Section 11 AC of the Act was invoked. Considering the overall facts and circumstances of the case, the quantum of penalty on the co-notices should be reduced. - demand of duty along with interest and penalty on appellant No. 1 M/s Praygraj Dyg. & Ptg. Mills Pvt. Ltd. is upheld. It is directed that if, the duty alongwith interest as determined by the Adjudicating Authority is paid within thirty days of communication of this order penalty liable to the pay shall be 25% of the duty and to be paid within the period so specified. Penalty on Shri Surendra Kumar Dalmia Director of the appellant No. 1 is reduced to ₹ 50,000/- and other appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Dalmia Enterprise ₹ 52,000/- (c) Dalmia Silk Mills ₹ 49,000/- (d) Surendrakumar Subhashchandra ₹ 49,000/- Commissioner (Appeals) rejected the appeals filed by the appellants and upheld the Adjudication Order. 3. Heard both the sides and on perusal of the records. 4. The main contention of the Learned Advocate of the appellants is that Appellant No. I paid the entire amount of duty and the Adjudicating Authority had not given option to pay penalty of 25% duty under Section 11 AC of the Central Excise Act, 1944. He relied upon the decision of the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1944, within the specified period. The Hon ble Gujarat High Court in the case of M/s. R.A. Shaikh Paper Mills Pvt. Ltd. (supra) held that the Adjudicating Authority should give option to pay reduced penalty and the appeal filed by the Revenue on the identical issue was dismissed. I agree with the submission of the Learned Advocate that the appellant should be given an option to pay penalty 25% of duty along with duty and interest within 30 days communication of Adjudication Order. 7. Regarding the imposition of penalty on the co-appellants, the Learned Advocate relied upon the decision of the Tribunal in the case of M/s. Shitala Prasad Sharma (supra). It has been held that when main accused stands absolved of penal consequences, no qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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