ISPAT INDUSTRIES LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an application for dispensing with pre -deposit of penalty of Rs. 50,000/ - imposed on the applicant by the Commissioner of Central Excise, Nagpur. The applicants have already paid the duty amount of Rs. 7,12,898/ - even before the passing of the impugned order.

(2.) THE applicant cleared their finished products GP Coil, CR Sheets, for export under Rule 13 of Central Excise Rules without payment of duty under bond. Proceedings were initiated against applicants following a visit to their factory by the Central Excise Officers on 6 -3 -1997 and the charges were that they had neither filed proof of export in respect of 60 AR 4 under which the goods were cleared for export even after expiry of 6 months period and that they had also not filed application requesting for extension of time limit for furnishing proof of export.

(3.) THE Learned Chartered Accountant Shri Vipin Kumar Jain, for the applicant pointed out that the case was adjudicated by the Commissioner of Central Excise, Nagpur by passing the impugned order by which he has imposed a penalty of Rs. 50,000/ - on the applicant. The learned C.A. submitted that the applicants have already paid the duty amount and the only plea they have is that the penalty on them has been imposed erroneously under Rule 173Q whereas the penalty permissible under Rule 14A, which is the relevant rule, is only a maximum of Rs. 2,000/ - therefore it was pleaded that the penalty may be confined to that amount which is permitted under the relevant rule.