Appellate Tribunal rules on penalty discretion, waives pre-deposit

The Appellate Tribunal CESTAT, New Delhi considered whether penalties are mandatory or discretionary. The Tribunal found a legal issue requiring examination and waived the pre-deposit of the penalty, staying its recovery pending appeal disposal. The order was issued on 3-3-2006.

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The Appellate Tribunal CESTAT, New Delhi heard a case where the penalty amount was enhanced by the Commissioner (Appeals) on the basis that it was mandatory. The appellant argued that penalties are discretionary, not mandatory. The Tribunal found a legal issue needing consideration and waived the pre-deposit of the penalty, staying its recovery until the appeal's disposal. The order was dictated and pronounced on 3-3-2006.

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