Customs, Excise and Gold Tribunal - Tamil Nadu
Devishree Electricals, Bala Computer ... vs Cce Coimbatore, Cce Coimbatore, Cce ... on 31 May, 2001
ORDER
Shri Jeet Ram Kait
1. There are five appeals filed in which three appeals are filed by M/s.Devishree Electricals, M/s.Bala Computer Graphics & Printing Pvt. Ltd and M/s.Maheswari Enterprises and the other two appeals are filed by Revenue against Maheswari Enterprises and Devishree Electricals.
2. Since the issue involved is common in all these appeals, they are taken up together for disposal as per law. The issue involved is as to whether mandatory penalty equivalent to the amount of duty has to be imposed or it can be reduced keeping in mind the gravity of the offence.
3. Ld. Counsel stated that in their case penalty under Section 11AC should be reduced considerably because they themselves had paid the duty voluntarily and he has relied on the Tribunal judgment in the case ofESCORTS JCB LTD Vs CCE New Delhi 1999 (95) ELT 9 (CEGAT) wherein the Tribunal reduced the mandatory penalty imposed under Sec.11AC from Rs.30 lakhs to Rs.10 lakhs. The Counsel submitted that as appellants are all small scale industries, they cannot afford much penalty and therefore he sought for leniency in the matter. He also submits that Revenue's appeals seeking for imposition of mandatory penalty for the period prior to introduction of Sec.11AC w.e.f. 28.9.96 are not maintainable in view of Supreme Court judgement rendered in CCE Coimbatore Vs ELGI EQUIPMENTS LTD 2001 (128) ELT 52(SC).
4. Heard Ld.SDR Shri G.Sreekumar Menon for the Revenue. He reiterates the grounds of appeal submitted by the Commissioner.
5. Heard both sides. The Tribunal in ESCORTS JCB LTD (supra) has taken a view that limit of penalty fixed in Section 11AC is the maximum limit and is not mandatory, and the authorities have discretion to impose lesser penalty, keeping in view the fact that appellants are a small scale industry and since they have deposited the duty amount voluntarily, we are of the considered opinion, following the ratio of Tribunal judgement in the case of ESCORTS JCB LTD (supra), that penalty in respect of Devishree Electricals is required to be reduced to Rs.75,000/-(Rupees Seventy Five thousand only); and in respect of Bala Computers Graphics to Rs.80,000/-(Rupees Eighty Thousand only); in respect of Maheshwari Enterprises to Rs.20,000/-(Rupees Twenty Thousand only) and the same are ordered accordingly. Appeals of the appellants are therefore modified to the above extent. The appeals of Revenue are rejected in view of Supreme Court judgment rendered in the case of CCE Vs ELGI EQUIPMENTS LTD (supra), as this order of mandatory penalty under Section 11AC prior to 28.6.96 is not maintainable.
(Dictated and Pronounced in open court)