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TMI Blog2016 (9) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... imposing penalty under Rule 25 cannot be faulted with though in normal circumstances penalty is required to be imposed in terms of Section 11AC, in which case the benefit of reduced penalty would have been available to the appellant, the said factor can be taken into consideration for reducing the penalty imposed under Rule 25. It already stand observed that Rule 25 does not require imposition of penalty to the extent of 100%. Further as a lot of time gap has passed between the date of passing of the order till date and the appellant had not deposited any penalty amount till date, I, by taking the interest factors into account reduce the penalty imposed upon M/s Jenith Laminators Pvt. Ltd. to 50% of the penalty imposed upon them. As reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 3. Based upon above proceedings were initiated against them proposing confirmation of demand, confiscation of seized goods and imposition of penalties. The notice resulted in passing of an order by the original Adjudicating Authority confirming the demand of duty of ₹ 3,74,847/- and confiscating the seized goods with an option to redeem on payment of redemption fine of ₹ 6 lakhs. In as mush as the appellant had deposited the duty amount, the same was appropriated. Further penalty of identical amount was imposed under Rule 25 of the Central Excise Rules and in addition penalty of ₹ 1 lakh was imposed on Shri Tarun Kumar Dharewa, Director of the appellant company under Rule 26 of the Rules. 4. The said order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds made to reduce the penalty in as much as he was not the one looking after day-to-day function of the company. 6. After hearing the learned DR, who has submitted that Rule 25 also provide for imposition of penalties in such a situation and, as such, the appellant s grievance that the penalty should have been imposed under Section 11AC cannot be appreciated, I find that Rule 25 under which the penalty to the extent of 100% stand imposed, is to the effect that subject to the provisions of Section 11AC of the Act , shall be liable to penalty not exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to has been committed, whichever is greater . The language in the said Rule 25 is subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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