2010 (2) TMI 246 - HC - Central Excise

Penalty and redemption fine- the assessee filed appeal before the Commissioner (Appeals) Central Excise, Meerut-I. The Commissioner (Appeals) Central Excise, Meerut-I allowed the appeal in part and reduced the redemption fine to Rs.1,00,000/- and penalty to Rs. 50,000/-. Being aggrieved by the order of the Commissioner (Appeals) Central Excise, Meerut-I, the assessee filed second appeal before the Tribunal. The Tribunal by the impugned order allowed the appeal in part and reduced the redemption fine to Rs.50, 000/- and penalty at Rs.25,000/-. Being aggrieved by the order, the revenue filed the present appeal. Held that- We do not see any reason to interfere in the matter. The quantum of penalty is the discretion of the Tribunal. In the facts and circumstances, no substantial question of law arises from the order of the Tribunal. The appeal fails and is dismissed.

Summary

The Allahabad High Court upheld the Tribunal's decision to reduce redemption fine and penalty for unaccounted goods found during a survey at the assessee's premises. The Tribunal reduced the fine to Rs.50,000 and penalty to Rs.25,000. The Court dismissed the revenue's appeal, stating that the Tribunal's discretion in determining the penalty was valid.