2016 (11) TMI 863

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n, mis-declaration etc, penalty equal to duty cannot be imposed; also it is his contention is that due to the budgetary changes, immediately they could not come to know about the change of notification, and removal of the product manufactured by the Appellant from the list of exempted goods. In these circumstances, I am of the view that imposing penalty equal to the duty confirmed would be too harsh. However, it cannot be denied that there was violation of the provisions of the Central Excise Act and the Rules made thereunder while clearing the goods availing the exemption Notification. Therefore, imposing of nominal penalty would meet the ends of justice. Keeping in view the circumstances, in my opinion, imposition of penalty of ₹ 5 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... mand, duty of ₹ 64,923/- was confirmed and penalty of equal amount was imposed under Section 11AC read with Rule 173Q of erstwhile Central Excise Rules 1944. Aggrieved by the said orders, the Appellants preferred an appeal before the learned Commissioner (Appeals), who in turn, reduced the duty further to ₹ 44,021/- and imposed equal amount of penalty under Rule 173Q of Central Excise Rules 1944. Also, she directed recovery of interest under Section 11AB of Central Excise Act, 1944. Hence, the present appeal. 3. The learned Advocate Shri Willingdon Christian for the Appellant submits that the clearance of Air Mingled Polyester Yarn, erroneously availing the benefit of exemption notification during the month of March unde .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it is his contention is that due to the budgetary changes, immediately they could not come to know about the change of notification, and removal of the product manufactured by the Appellant from the list of exempted goods. In these circumstances, I am of the view that imposing penalty equal to the duty confirmed would be too harsh. However, it cannot be denied that there was violation of the provisions of the Central Excise Act and the Rules made thereunder while clearing the goods availing the exemption Notification. Therefore, imposing of nominal penalty would meet the ends of justice. Keeping in view the circumstances, in my opinion, imposition of penalty of ₹ 5,000/- would suffice the purpose. Accordingly, the penalty is re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X