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2019 (2) TMI 136 - CESTAT CHENNAIBenefit of reduced penalty of 25% u/s 11AC - SSI Exemption in respect of Unit–I - crossing of threshold limit - Held that:- The said request of the appellant is legal and proper for the reason that the adjudicating authority ought to have given the option to pay the reduced penalty of 25% under section 11AC. Thus, the impugned order stands modified to the extent of granting the option to pay reduced penalty of 25% of the duty amount only. Demand of duty in respect of Unit–II is ₹ 2,68,455/- - period 1997–98 - benefit of SSI exemption - Held that:- The appellant is eligible for the SSI benefit under Notification 38/97. It is also to be noted that the adjudicating authority for the period 1996 – 97 has excluded the value of ₹ 84,585/- and thus the turnover for the year 1996 – 97 which is the preceding financial year would be less than ₹ 300 lakhs. Therefore, the appellant in Unit II would be rightly eligible for notification 38/97 - The demand for this period which is ₹ 1,54,519/- is therefore set aside along with the penalties. However, since the appellant is not contesting the duty liability and the penalty for the period prior to 1997 – 98, in respect of Unit – II, the same does not require interference. Appeal allowed in part.
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