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2016 (6) TMI 666 - AT - Central ExcisePenalty against the appellant company and directors - removal of goods without payment of duty -whether the appellant are eligible to the benefit of 25% of the penalty imposed under section 11AC of CEA, 1944, since the appellant company had undisputedly paid the duty along with interest? - Held that:- This issue is covered by a plethora of cases including by the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise, Surat-I vs. Krishnaram Dyeing and Finishing Works, (2013 (8) TMI 539 - GUJARAT HIGH COURT ). Accordingly, the appellants are eligible to the benefit of discharging 25% of the penalty imposed. The penalty on the Director is concerned, on going through the orders of the authorities below find that the appellant-Director Sri V.K.Jain had accepted/ratified the statement of their DGM admitting the clearances of goods without payment of duty and the demand has been confirmed on the basis of said statements. In these circumstance, do not see any reason for non-imposition of penalty on the Director as his role on removal of goods without payment of duty has been fairly established. However, keeping in view the amount of duty involved, personal penalty equal to the duty amount imposed on the Director is too harsh. Therefore, in the interest of justice, it is appropriate that the penalty on the appellant Sri V.K.Jain be reduced to ₹ 1,25,000/-. In view of the above, the appellant company is allowed to pay 25% of the penalty imposed under section 11AC of CEA, 1944 and Sri V.K.Jain is directed to pay penalty of ₹ 1,25,000/- under Rule 26 of Central Excise Rules, 2002. The appeals disposed off on the above terms.
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