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2016 (3) TMI 620 - AT - Central ExciseDifferential duty demand - Penalty imposed challenged - grievance of the assessee is that no option to pay reduced penalty of 25% under Section 11 AC was given to them, and that penalty on M/s Garden Silk Mils Limited under Rule 25 is not sustainable as the said unit was only a job worker, and that the penalty of ₹ 2 Lakhs on Shri Bipin Modi is too harsh as he is only a Director of M/s Alfino Fashions Pvt Limited. - Held that:- Imposition of penalty, in addition to demand of duty with interest on the appellants are sustainable and appropriate. However we find that the option to pay 25% of the equivalent penalty imposed under Section 11 AC was not extended to M/s Alfino Fashions Pvt Ltd., by the lower authorities. As they were rightly eligible for the same, while upholding the imposition of penalty of ₹ 28,00,951/- under Section 11 AC on M/s Alfino Fashions pvt Ltd, we hold that they are eligible for the option of payment of reduced penalty of 25%, provided they pay the same within 30 days of receipt of this order. We also find that under the facts and Circumstances of the case, there is merit in the argument of the learned Counsel for the appellants that the penalty on M/s Garden Silk Mills Limited and Shri Bipin Modi should be reduced, and hence the penalty of ₹ 1 Lakh on M/s Garden Silk Mills Limited is reduced to ₹ 50,000/- and the penalty of ₹ 2 Lakh on Shri Bipin Modi is reduced to ₹ 1 Lakh. The impugned orders of the lower authorities are upheld with the said modification.
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