Penalty reduction under Rule 96ZO(3) sustained after Tribunal followed an earlier Division Bench view on the same issue.

The Tribunal considered whether the Commissioner (Appeals) could reduce a penalty imposed under Rule 96ZO(3) of the Central Excise Rules, 1944. It noted that an identical issue in the same assessee's case had already been decided by a Division Bench, and that earlier authority supported imposition of penalty under the rule. As no later contrary decision was produced, the Tribunal followed the prior Division Bench view. The reduction of penalty by the Commissioner (Appeals) was therefore left undisturbed and the departmental appeal failed.

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Issues: Whether the Commissioner (Appeals) had power to reduce the penalty imposed under Rule 96ZO(3) of the Central Excise Rules, 1944.

Analysis: The Tribunal noted that an identical issue in the same assessee's case had already been decided by a Division Bench, and it also referred to the earlier view supporting imposition of penalty under the relevant rule. As no contrary subsequent decision was shown, the Tribunal followed the earlier Division Bench order on the same question.

Conclusion: The reduction of penalty by the Commissioner (Appeals) was not interfered with, and the departmental appeal failed.

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