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TMI Blog2016 (3) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... are sustainable and appropriate. However we find that the option to pay 25% of the equivalent penalty imposed under Section 11 AC was not extended to M/s Alfino Fashions Pvt Ltd., by the lower authorities. As they were rightly eligible for the same, while upholding the imposition of penalty of ₹ 28,00,951/- under Section 11 AC on M/s Alfino Fashions pvt Ltd, we hold that they are eligible for the option of payment of reduced penalty of 25%, provided they pay the same within 30 days of receipt of this order. We also find that under the facts and Circumstances of the case, there is merit in the argument of the learned Counsel for the appellants that the penalty on M/s Garden Silk Mills Limited and Shri Bipin Modi should be reduced, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is, at ₹ 78.26/Kg to independent buyers. M/s Garden Silk Mills Ltd, while clearing the finished goods namely processed yarn, reversed the CENVAT credit availed on the duty paid on the input namely the same processed yarn valued at ₹ 62.25 per Kg., on the ground that there was no further processing of the input and the same was cleared as it is. The case of the Department is that M/s Alfino Fashions Pvt Ltd and M/s Garden Silk Mills Ltd, are functioning from the same premises and are interconnected and related to each other. By the said modus operandi, the finished goods namely processed yarn was under valued and Central Excise Duty was paid at the lower value of ₹ 62.25 per Kg, whereas duty should have been paid on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On careful perusal of the records and consideration of the arguments of both sides, we find that under the facts and circumstances of the present case, imposition of penalty, in addition to demand of duty with interest on the appellants are sustainable and appropriate. However we find that the option to pay 25% of the equivalent penalty imposed under Section 11 AC was not extended to M/s Alfino Fashions Pvt Ltd., by the lower authorities. As they were rightly eligible for the same, while upholding the imposition of penalty of ₹ 28,00,951/- under Section 11 AC on M/s Alfino Fashions pvt Ltd, we hold that they are eligible for the option of payment of reduced penalty of 25%, provided they pay the same within 30 days of receipt of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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