TMI Blog2001 (7) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... Monica Electronics Limited. Two appeals have been filed by Shri V.K. Gupta and Ms. S.S. Mirchandani. Since all these appeals arise out of the same order, therefore, they were heard together and are being disposed of by this common order. 2.The facts of the case briefly stated are that M/s. Monica Electronics Limited (M/s. MEL) are engaged in the manufacture of colour TV sets. M/s. MEL created an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty of Rs. 50,93,987/- under Rule 173Q read with Section 11AC. He held that M/s. MEL shall have to pay interest of an appropriate amount under Section 11AB. He also imposed penalties of Rs. 2 lakhs on Ms. S.S. Mirchandani, Rs. 1 lakh on Shri V.K. Gupta and Rs. 2 lakhs on Shri Ratnesh Mishra. 3.Demand of duty was not contested before us. No appeal has been filed by Shri Ratnesh Mishra, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and prays that the orders imposing penalty on the company may be set aside. 5.In regard to personal penalties imposed on Ms. S.S. Mirchandani and Shri V.K. Gupta, ld. Counsel submits that it was a case of valuation under the Rules and interpretation of various Sections and Rules of Central Excise were in dispute, therefore, the penalty need not be imposed on the person concerned. He submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dani, ld. SDR submits that the manufacturing unit had deliberately created a marketing unit and had reduced the assessable value and thus they knew clearly that the goods were liable to confiscation. He, therefore, submits that the penalty imposed on these 2 persons is sustainable in law. 8.Heard the rival submissions. On careful consideration of the submissions made and the evidence on records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it there was lowering of assessable value. This incorrect lowering of assessable value would have led to confiscation of the goods and, therefore, we hold that the ingredients of Section 209A are present in the present case for imposition of penalty. Having regard to all the facts and circumstances of the case, we find that the penalty is on the higher side, therefore, the penalty on Ms. S.S. Mirc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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