2004 (4) TMI 421 - AT - Central Excise

Summary

Issues: Imposition of redemption fine post duty liability settlement under KVSS

Analysis:
The appeal challenged the order-in-appeal regarding the imposition of a redemption fine of Rs. 50,000 on the appellants by the Commissioner (Appeals). The Counsel argued that after settling the duty liability under the KVSS, no redemption fine should be imposed, especially since 50% of the duty amount was also deposited. However, the Tribunal disagreed, stating that while duty liability was settled under the KVSS, the liability for redemption fine was left open for adjudication. The adjudicating authority, in line with Trade Notice and Board's Circular, confirmed the redemption fine, as the KVSS settlement did not preclude such actions. The Tribunal held that the Trade Notice and Circular did not provide relief for redemption fine on payment of 50% duty, thus upholding the imposition of the redemption fine.

The Tribunal found no illegality in the Commissioner (Appeals) order but decided to reduce the redemption fine to Rs. 40,000 considering the circumstances. The Tribunal concluded that apart from this modification, the impugned order was upheld, disposing of the appeal accordingly.