CCE, TRICKY Vs. SUNDARAM INDUSTRIES LTD.

JUDGEMENT

(1.) IN this reference application on Tribunal's final order No. 1681/98 dated 1.9.1998, the Revenue submits that the following questions of law are referable to the Hon'ble High Court of Madras: - -

(2.) THE provisions of Section 11AC of Central Excise Act, 1944 came into force with effect from 28.9.1996 and the Show Cause Notice was issued on 13.5.1997. While the Show Cause Notice was issued on 13.5.1997 much after the provisions came into force, is the Hon'ble Tribunal correct in concluding that these provisions would apply only for offences committed prior to 28.9.1996, the date on which Section 11AC came into force?

(3.) I have carefully considered these submissions and records of the case. I find that a full Bench of this Tribunal in the case of Escorts JCB Ltd. (supra) has already unequivocally held that while section 11AC may require imposition of penalty as mandatory, the maximum amount of penalty indicated therein is not required to be mandatorily imposed and the Appellate Authority has a discretion to impose lesser penalty for reasons recorded in his judgment. The question proposed by the Revenue is exactly same on the powers of the Tribunal to reduce the mandatory penalty imposed. I find that since this question has already been answered by a full Bench of this Tribunal in the decision noted above, judicial discipline requires this Single Member Bench to follow the said decision. Therefore, applying the ratio of the said decision, with respect, I find that no question of law arises to be referred to the Hon'ble High Court, in view of the decision of the full Bench of the Tribunal noted above, which has already settled the question of law.