Excise penalty reduction sustained where exempt scrap and paid duty on ingots showed no excess or arbitrariness.

Penalty in an excise dispute was examined in light of exempt scrap cleared under Notification No. 49/97 and duty already paid on ingots when pointed out by the department. On those facts, the appellate authority's reduced penalty was treated as justified and was not shown to be excessive or arbitrary. The impugned order was therefore left undisturbed and the penalty was upheld.

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Issues: Whether the penalty of Rs. 50,000 imposed for the excise dispute required reduction or exoneration.

Analysis: The scrap items were accepted as exempt under Notification No. 49/97, while duty on the ingots had been paid when pointed out by the department. In these circumstances, the reduced penalty fixed by the appellate authority was considered justified on the facts and was not shown to be excessive or arbitrary.

Conclusion: The penalty was upheld and no interference with the impugned order was warranted.

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