2008 (7) TMI 631 - AT - Central Excise

Revenue's ROM application allowed, penalty reduction denied for non-payment within 30 days. Firm penalized under Section 11AC.

The ROM application filed by Revenue challenging the reduction of penalty based on non-payment of interest and penalty within 30 days of the order was ... Rectification of mistake - Reduction in penalty Issues: ROM application filed by Revenue challenging reduction of penalty based on non-payment of interest and penalty within 30 days of order.Analysis:1. The Revenue filed a ROM application challenging the Final Order that sustained a duty demand, interest, and penalties on the appellant firm and two other individuals associated with the offense. The Commissioner (Appeals) had reduced the penalty on the firm and one partner due to timely payment of the penalty within 30 days of the order.2. The appellant's counsel argued that interest and penalty were not paid within 30 days as they had approached the Settlement Commission, which did not grant their application. The failure to mention non-payment of interest and penalty during the appeal hearing was acknowledged.3. The ld. SDR highlighted an error in the final order, supporting the ROM application filed by the Revenue.4. The presiding judge examined the statutory provisions of Section 11AC, emphasizing that the appellant firm did not qualify for the penalty reduction as interest and penalty were not paid within the stipulated 30-day period. The reduction in penalty was not sought on any other grounds during the appeal.5. Consequently, the judge modified paragraph 1 of the final order to reflect that the penalty imposed on the firm under Section 11AC was sustained due to non-payment of interest and penalty within the specified timeframe. The ROM filed by the Revenue was allowed, overturning the earlier decision on penalty reduction.