LAWS(CE)-2009-10-147

COMMISSIONER, C. EXCISE Vs. SUMIK SPINNERS PVT. LIMITED

Decided On October 30, 2009
Commissioner, C. Excise Appellant
V/S
Sumik Spinners Pvt. Limited Respondents

JUDGEMENT

(1.) NO one has appeared on behalf of the respondents on 30.9.2009 and the matter was listed for 30.10.2009. Today also no one has appeared. Respondent was manufacturing goods on job work basis and duty demand of Rs. 88,320/ - was confirmed with interest on the ground that they had cleared goods without payment of duty, without issue of Central Excise invoices and without making any entries in the production record. After adjudication and appellate process, Commissioner (Appeals) reduced the penalty on respondents to Rs. 20,000/ - on the ground that appellant company had paid full amount of duty demand even before issue of show cause notice. On an appeal filed by the Revenue, this Tribunal, vide order No. A/2568/WZB/Ahd/2007 dated 01.10.2007 enhanced the penalty to 25%. On appeal filed by the Revenue against this order of the Tribunal, Hon'ble Gujarat High Court has remanded the matter with following directions:

(2.) IN this case the only issue involved is quantum of penalty under Section 11AC of Central Excise Act, 1944. This Tribunal in the case of Swati Chemicals Industries and Ors. being order No. A/1556 -1576/WZB/AHD/2009 dt. 21.7.2009 and also the decision of the Hon'ble Gujarat High Court in the case of CCE Ahmedabad v. Akash Fashion Prints Pvt. Limited, 2009 (93) RLT 471 (Guj.) held that where adjudicating authority and appellate authority had not given any option to the assessee to pay duty, interest and 25% of duty towards penalty, within 30 days, such option can be given by the Tribunal. Accordingly, in this case, since the respondent have not paid interest and if the interest on the duty amount and penalty to the extent of 25% are paid within 30 days from communication of this order, the penalty to the extent of 25% would be sufficient. It is made clear that if the interest and penalty to the extent 25% of the duty are not paid within 30 days of this order, penalty shall stand enhanced to 100% of the duty demanded.