2011 (9) TMI 12

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..... he matter being passed over once. In these circumstances, the respondent is proceeded ex-parte.   2. Mr Anand, learned counsel for the revenue, submits that the appeal can be heard on the basis of the material available on record. He further submits that the appeal be admitted and decided as it has been pending for a considerable period of time on a short issue, which is covered by the judgment of the Supreme Court. 3. In view of the above circumstances, the appeal is admitted. The only question of law which is propounded for our consideration by the revenue is as follows:   (i) Whether the Customs Excise and Service Tax Appellate Tribunal (in short 'CESTAT') erred in law in reducing the penalty imposed to an amount which is le .....

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..... s the directors preferred the appeals with the Commissioner of Central Excise (Appeals) (in short the 'Commissioner.). By an order dated 11.11.2003 the Commissioner upheld the order-in-original, i.e., the adjudication order. However, the penalty imposed on the respondent was reduced to 2 lacs.   4.3. The matter was carried in appeal by the respondent to CESTAT. The CESTAT by the impugned judgment dated 01.09.2006 sustained the view taken by the authorities below with a slight modification in so far as quantification of the duty was concerned. The CESTAT gave benefit to the respondent to the extent that, the value of clearances of goods, on which duty had been demanded, was treated as cum - duty price. Based on adoption of this princip .....

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..... udgment in the case of Godavari Manar Sahakari (supra) are extracted hereinbelow:   "9. The reasons for such a stiff and stringent provision, are not far to guess. As can be seen from the scheme of Sections 11A, 11AA, 11AB and 11AC of the Act. It is evident that Section 11A prescribes procedure for recovery of duties not levied or not paid, or short-levied or short-paid, or erroneously refunded. Sub-Section (1) within itself and within its proviso covers the cases of duty not paid/ short paid in absence of mens rea or with intention. Section 11A(2) prescribes interest on delayed payment of the duty, in cases where, in spite of determination under Section 11A(2), the duty so determined is not paid within three months. Interest on delay .....

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