COMMISSIONER OF C. EX. Vs. SHAM UDYOG LTD.

JUDGEMENT

(1.) THESE appeals are filed by the department against order in appeal dated 13 -7 -04 which reduced the penalty imposed on the respondents under Rule 96ZO(3) of the Central Excise Rules, 1944.

(2.) THE learned DR submits that the provisions of Rule 96ZO(3) of Central Excise Rules 1944 would on plain reading, indicate that the amount of penalty that has to be imposed under the said rules is the penalty and is not the maximum penalty. Hence, Commissioner (Appeal) does not have the power to reduce the penalty imposed under Rule 96ZO(3). He relies upon the decision of the Hon'ble High Court of Judicature at Allahabad in the case of Pee Aar Steels (P) Ltd. v. Commissioner of Central Excise, Meerut as reported as .

(3.) ON the other hand, the learned advocate appearing for the appellants submits that the Division Bench of this Tribunal in the appellants own case in an identical issue has held that the Commissioner (Appeal) has got powers to reduce the penalty imposed on the appellants under Rule 96ZO(3).