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2014 (2) TMI 214 - HC - Central ExcisePenalty u/s 11AC - Denial of CENVAT Credit - Tribunal reduced penalty - Held that:- Plea raised on behalf of the Revenue that there is no element of discretion even in absence of conditions mentioned under Section 11AC, cannot be accepted. In the present case, there is no finding or plea that the conditions mentioned in Section 11AC exist or that there is any mens rea on the part of the assessee. Thus, it is a case where there is delay in payment simplicitor for which penalty is leviable, in addition to the interest liability. In such circumstances, levy of minimum penalty cannot be held to be mandatory. Element of discretion is certainly available to be exercised on the principle of proportionality. The penalty has to be commensurate to the circumstances of default. Reduction of penalty to ₹ 1,00,000/- cannot be held to be arbitrary or perverse - Decided against Revenue.
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