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2017 (7) TMI 92 - ALLAHABAD HIGH COURTPenalty u/r 96-ZO of the Central Excise Rules, 1944 - Whether the tribunal in reducing the penalty amount is justified in maintaining the penalty of ₹ 1,00,000/- in exercise of power under Rule 96-ZO of the Central Excise Rules, 1994? - Held that: - Rule 96-ZO of the Rules provides for imposing of penalty equal to the outstanding amount of duty or ₹ 5,000/- whichever is greater. The aforesaid rule has been declared to be ultra vires insofar as it postulates to impose penalty equal to the amount outstanding vide Shree Bhagwati Steel Rolling Mills vs. Commissioner of Central Excise [2015 (11) TMI 1172 - SUPREME COURT] - In view of the fact that the upper limit of imposing penalty equal to the amount outstanding has been declared to be ultra vires, a penalty of minimum of ₹ 5000/- or some reasonable higher amount alone can be imposed. The reduction of penalty even to Rs.One lac is unjustified more particularly as there is no material or basis to justify imposition of Rs.One lac as penalty - penalty is liable to be reduced to ₹ 5,000/- - appeal allowed - decided in favor of appellant.
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