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2016 (9) TMI 735 - AT - Central ExciseLevy of penalty - no challenge to the confirmation of demand of duty or confiscation of the seized goods - unaccounted stock - The godown search revealed presence of the lamination goods, including inner pouch and outer packing with the brand name of the Kuber Group of Companies - The godown keeper the could not produce any documents to show the stock of the goods in the godown - Held that:- as per proviso to Section 11AC if an assessee pays 25% of the penalty within a period of 30 days from the imposition of penalties, the penalty shall stand reduced to the said amount. Though the order of the Adjudicating Authority imposing penalty under Rule 25 cannot be faulted with though in normal circumstances penalty is required to be imposed in terms of Section 11AC, in which case the benefit of reduced penalty would have been available to the appellant, the said factor can be taken into consideration for reducing the penalty imposed under Rule 25. It already stand observed that Rule 25 does not require imposition of penalty to the extent of 100%. Further as a lot of time gap has passed between the date of passing of the order till date and the appellant had not deposited any penalty amount till date, I, by taking the interest factors into account reduce the penalty imposed upon M/s Jenith Laminators Pvt. Ltd. to 50% of the penalty imposed upon them. As regards penalty imposed on the Directors, it is seen that Director in his statement has admitted removal of the goods from its factory to godown, without payment of duty, and as such, he is also liable to penalty. - Penalty on director also reduced to 50% Decided partly in favor of assessee.
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