COMMISSIONER OF C. EX., AHMEDABAD Vs. DIPAK INTERMEDIATES

JUDGEMENT

(1.) TRIBUNAL vide its order No. A/1298 -1299/WZB/AHD/2007 dated 4 -6 -2007, upheld the duty confirmation of Rs. 31,568/ - but reduced the penalty to Rs. 8,000/ -. Being aggrieved with the above order Revenue filed tax appeal before the Honble Gujarat High Court, which stands disposed off by the Honble High Court vide their order dated 2 -3 -2009, remanding the matter to the Tribunal for fresh decision, in the light of the law declared by the Honble Supreme Court in the case of UOI v. Dharamendra Textile Processors - 2008 (231) E.L.T. 3 (S.C.). The Honble High Court also observed that the question of applicability of provisos to Section 11AC will also be considered and examined by the Tribunal while deciding the matter afresh.

(2.) I have heard the learned SDR Shri Sameer Chitkara. The assessee has filed written submissions. It is seen that penalty of Rs. 22,219.00 was imposed by the Assistant Commissioner vide his Order in Original, which was deposited by the assessee within a period of 30 days of passing of the order. The said penalty was enhanced by the Commissioner (Appeals) vide his impugned order and the enhanced penalty amount of Rs. 9,349.00 was also deposited within a period of 30 days of the passing of the above order.

(3.) IN terms of the first and second provisos to Section 11AC, if 25% of the penalty amount is deposited within a period of 30 days from the passing of the order by Original Adjudicating Authority or from the date of enhancement by the appellate authority, the penalty amount shall stand reduced by 25% of duty amount. Inasmuch as the appellant had deposited full amount of penalty within a period of 30 days from the communication of respective order, the benefit of above provisos is required to be extended. Accordingly, 25% of Rs. 31,568/ - confirmed as duty is upheld as penalty. Appeal is disposed off in above terms.