COMMISSIONER OF CENTRAL EXCISE Vs. BHAGWANDAS METALS LTD

JUDGEMENT

(1.) The Commissioner of Central Excise is the appellant. Challenge is to the order of the Tribunal dated 06.11.2009 passed in Final Order No. 1610 of 2009. The only issue is relating to the deletion of penalty. The appellant seeks to raise the following substantial question of law:

(2.) We heard Mr. Arunkumar, learned Standing Counsel for the appellant.

(3.) The Tribunal while examining the order of the Original Authority, namely, the Commissioner of Central Excise dated 31.10.2003, has noted that in respect of the respondent's Induction Furnace Unit, the duty leviable for the period from 1.9.1997 to 31.03.2000 was Rs. 6,43,732/-, but actually payable was only Rs. 1,43,752/-. The Tribunal has rendered a finding of fact that apart from the payment of Rs. 4,35,484/- on 30.03.1998, another sum of Rs. 5,00,000/- was paid on 08.11.1997, out of the total amount of Rs. 10,79,236/-. It therefore held that the balance amount of Rs. 1,43,752/- alone was payable for the above said period. The Original Authority apart from determining the difference duty at Rs. 6,43,752/-, also imposed a penalty of Rs. 10,79,236/-. While dealing with the penalty imposed by the Original Authority, the Tribunal has noted that in respect of the re-rolling mills, the respondent had paid the duty in excess than what was payable. The statement with reference to the said payment as noted by the Original Authority was as under: