EAGLE ULTRAMARINE INDUSTRIES Vs. CCE

JUDGEMENT

(1.) AFTER hearing both the sides duly represented by Shri P.M. Dave, learned advocate appearing for the appellant and Shri R. Nagar, learned SDR appearing for Revenue, we find that initially the original adjudicating authority confirmed the demand of the duty of Rs. 11,42,558/ - against the appellant along with the imposition of penalty of identical amount. In addition penalties were imposed on the partner and employee of the company.

(2.) ON appeal against the above order, appellant accepted their duty liability to the extent of Rs. 5,85,039 and challenged the balance duty. Commissioner (Appeals) in his impugned order has accepted the appellant's plea and confirmed the duty to the tune of Rs. 5,85,039/ - which was already paid by the appellant. He accordingly dropped the balance amount of duty. However he confirmed penalty of Rs. 2 lakhs on the company but set aside the penalties imposed on the other individuals.

(3.) LEARNED DR appearing for the Revenue submits that lower authorities should have imposed penalty to the extent of Rs. 5,85,039/ - in terms of the law declared by the Hon'ble Supreme Court in the case of Union of India v. Dharmendra Textile Processors reported in : 2008 (231) E.L.T. 3(S.C). As such the option to pay 25% should be in respect of the total amount of penalty required to be imposed upon the assessee, though he fairly agrees that no appeal stands filed by the Revenue for enhancement of penalty.