2023 (6) TMI 63 - HC - Central Excise

Levy of penalty under Section 11AC of the Central Excise Act 1944 - demand was made on the basis of the return submitted by the assessee and within normal period of time - HELD THAT - The contention of the appellant before the Tribunal was that the delay in payment on account of financial difficulties and prayed for waiver of the penalty altogether. The learned Tribunal rightly noted that the decision of the Hon ble Supreme Court in UNION OF INDIA AND OTHERS VERSUS DHARMENDRA TEXTILE PROCESSORS AND OTHERS 2008 (9) TMI 52 - SUPREME COURT and dismissed the appeal. Appeal dismissed.

Summary

Issues involved: Appeal u/s 35G of the Central Excise Act, 1944 challenging the penalty imposed by the Customs, Excise & Service Appellate Tribunal.

Summary:

The main issue in this appeal was whether the Tribunal correctly upheld the penalty imposed by the authorities in addition to the duty demand. The appellant argued for penalty waiver due to financial difficulties causing payment delay. However, the Tribunal, considering the Supreme Court's decision in Union of India Vs. Dharmendra Textiles Processors, 2008(231) ELT 3 (SC), rejected the appeal. The Court found no fault in the Tribunal's decision, leading to the dismissal of the appeal. The substantial legal question was resolved against the assessee, and the related application was closed.