2009 (11) TMI 700 - AT - Central Excise

Summary

Issues involved: Interpretation of Section 11AC of Central Excise Act, 1944 for imposition of penalty on manufacturer and director.

The Hon'ble Gujarat High Court remanded the matter to the Tribunal to examine the applicability of Section 11AC of Central Excise Act, 1944 in light of relevant legal precedents. The Court set aside the previous Tribunal order and directed a reevaluation based on the law laid down by the Hon'ble Supreme Court in specific cases. The Tribunal found that while the mandatory penalty under Section 11AC applies to the manufacturer, the penalty on the Director was imposed under a different rule, not u/s 11AC. Therefore, the Tribunal confirmed the reduction of penalty imposed on the Director to Rs. 35,000 as per the earlier order.