COMMISSIONER OF CENTRAL EXCISE Vs. NITIN ASSOCIATES

JUDGEMENT

(1.) IN adjudication of a show -cause notice wherein it had been alleged, inter alia, that the respondent had clandestinely removed inputs after taking CENVAT Credit thereon and had suppressed material facts before the department "with intent to evade payment of duty", the original authority confirmed the demand of duty to the extent of Rs. 5,15,906.50 and appropriated equal amount paid earlier towards this demand. It, however, refrained from imposing any penalty on the assessee under Section 11AC of the Act, as they had paid duty before issue of the show -cause notice. The learned Commissioner (Appeals), in the impugned order, held that the assessee was liable for penalty under Section 11AC. However, considering the factum of payment of duty prior to issue of the show -cause notice, the appellate authority imposed penalty only to the extent of Rs. 1.50 lakhs on the assessee "to meet the ends of justice" under Section 11AC. The present appeal of the Revenue is against the shortage of penalty. The appellant prays for enhancement of the quantum of penalty to the level of duty under Section 11AC.

(2.) THE respondent does not want to be personally heard vide their letter dated 1.12.07 addressed to the Assistant Registrar. The learned JDR has reiterated the grounds of this appeal. He has also relied on the following decisions:

(3.) IN the above view of the matter, the respondent is liable to be penalised in terms of Section 11AC of the Act and, accordingly, penalty equal to duty will be appropriate on the facts of this case. The quantum of penalty is, accordingly, enhanced to Rs. 5,15,906.50. The impugned order shall stand modified accordingly.