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TMI Blog2017 (3) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, on the basis of information searched factory premises of the appellant. During the course of search it was found that the appellant have not recorded manufacture and clearances of job work goods in their RG1 register. Accordingly they have not paid appropriate excise duty on the manufacture and clearances of the goods on loan licence basis. Accordingly, show cause notice was issued. The adjudicating authority confirmed the demand of Rs. 38,53,952/- and imposed equal amount of penalty of Rs. 38,53,952/- under Section 11AC and also penalty of Rs. 5 Lakhs on the Shri. D.J. Dhamane, Managing Director of M/s. Noble Drugs Ltd and penalty of Rs. 1 lakh each on Shri. Dilip Oak and Mrs. Anita Thakur(ex-employees of M/s. Noble Drugs Ltd). Out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the various judgments that Board Circular is binding on the field formation. In support he placed reliance on the Hon'ble Supreme Court judgments in case of Commissioner of C. Ex. Customs Vs. R.A. Shaikh Paper Mills Pvt Ltd[2016(335) ELT 203(S.C.)] wherein judgment of Hon'ble Gujarat High Court in case of Commissioner of C. Ex. & Cus., Daman Vs. R.A. Shaikh Paper Mills Pvt Ltd[2010(259) ELT 53(Guj)] was upheld. Accordingly Commissioner ought to have given option for reduced penalty of 25% under Second proviso to Section 11AC. As regard the personal penalties, he submits that Rs. 5 Lakhs imposed on the Managing Director of the company but he was not looking after day to day records maintenance of excise therefore penalty should not have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute as the appellant have admitted duty liability and not contested in the present appeal. The appellant's submission is that they should have been given the an option of reduced penalty of 25% as provided under second proviso to Section 11AC in the impugned order which Commissioner has failed to do so. On this issue various judgments were passed where Commissioner must give the option in the order of reduced penalty of 25%. As per the judgments relied upon by the Ld. A.R. in case of Rajshree Dyg. & Ptg. Mills (P) Ltd(supra) I find that in this case Hon'ble Supreme Court has passed summary order and no detailed findings was given therefore the same is not binding precedence. On the contrary Hon'ble Supreme Court by detailed order in case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Officer determining such duty, the amount of penalty liable to be paid by such persons under this section shall be twenty-five percent. Of the duty so determined: Provided further that the benefit of reduced penalty under the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso:" It is seen that these proviso to section 11AC of the Act have been specifically inserted to ensure speedy recoveries of the disputed amount. It is an incentive given to the assessee that if he pays the duty amount along with interest, the penalty is reduced to 25% of the duty. This provision is beneficial to the department as well as the assessee as rightly po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over he has not disputed the liability and admittedly paid substantial amount of duty. Regarding the penalty on the employee Shri. Dilip Oak, I found that he is a small time employee of the appellant company and is also not in the job, there is also no evidence that he is beneficiary of any non payment of duty by the appellant. Therefore considering overall facts and circumstances of the case, I find that personal penalty on the both above appellants are not sustainable, more so when penalty was imposed on the appellant company I therefore set aside the penalty imposed on shri. D.J. Dhamne, Managing Director and Shri. Dilip Oak, ex-employee of the company. As regard the Appeal of Ms. Anita Thakur who was ex-employee of the appellant firm, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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