COMMISSIONER OF CENTRAL EXCISE Vs. BEAS SCIENTIFIC DYERS

JUDGEMENT

(1.) THE Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for brevity 'the Tribunal') vide impugned order dated 5.1.2011 (A.6) has merely granted statutory right to the assessee namely M/s Beas Scientific Dyers to deposit the amount of penalty under Section 11AC of the Central Excise Act, 1944 (for brevity 'the Act'). According to the principal clause of the aforesaid provision penalty equivalent to the amount of duty could be imposed. However, the amount of penalty to be deposited is reduced to 25% if it is deposited within a period of 30 days from the date of receipt of notice of demand. In the show -cause notice raising the demand and imposing penalty nothing was indicated regarding the benefit of depositing the amount within 30 days. The operative part of the order issued by the Assistant Commissioner, Central Excise Division No.3, Ludhiana reads as under:

(2.) I impose penalty amounting to Rs. 278135/ -on M/s Beas Scientific Dyers, New Shakti Nagar, Ludhiana.