Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1013 - AT - Central ExciseImposition of penalty - Section 11AC of Central Excise Act, 1944 - manufacture and clearance of Electroplating Chemicals like Gold Potassium Cynide (GPC) without payment of duty - Commissioner (Appeals), has not extended an option to pay 25% of the penalty as prescribed under Section 11AC of Central Excise Act, 1944 - Held that:- it is found that the learned Commissioner (Appeals) has analyzed the evidences and arrived at the conclusion that the Appellant has indulged in clandestine manufacture and clearance of GPC during the relevant period. Also, he has considered the role of the Managing Director Shri Chandrakantbhai L. Shah in the said activity of the Appellant of clandestine manufacture and clearance of GPC. Therefore, I do not find any reason to record a different finding than that arrived at by the learned Commissioner (Appeals). Reduction of mandatory penalty - Held that:- I do not see any justification in the impugned order in reducing mandatory penalty imposed under Section 11AC of Central Excise Act, 1944 from ₹ 2,29,360/- to ₹ 1.00 lakhs. The Hon'ble Supreme Court in the case of Union of India Vs Dharmendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT] has held that the mandatory penalty imposed under Section 11AC of Central Excise Act, 1944 cannot be reduced. Also, I do not find any reason to interfere with the penalty imposed on the Director as held in the impugned order of the learned Commissioner (Appeals). Therefore, the mandatory penalty as ordered by the Adjudicating authority is restored. However, the Appellant are eligible to exercise the option to pay 25% of the said penalty amount of ₹ 2,29,360/- in view of the judgment of Hon’ble Gujrat High Court in the case of CCE Vs Harish Silk Mills [2010 (2) TMI 494 - GUJARAT HIGH COURT] and CCE Vs G.P.Presstress Concrete Works [2012 (8) TMI 933 - GUJARAT HIGH COURT] on fulfillment of the conditions laid down under Sec. 11AC of CEA, 1944. - Decided partly in favour of appellant
|