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of <h1>Tribunal reduces penalty for delayed duty payments in iron and steel industry case</h1> <h3>COMMISSIONER OF C. EX., MEERUT Versus GARWAL ROLLING MILLS (P) LTD.</h3> COMMISSIONER OF C. EX., MEERUT Versus GARWAL ROLLING MILLS (P) LTD. - 2009 (240) E.L.T. 80 (Tri. - Del.) Issues involved:The appeal by the Department against the penalty reduction imposed by the Commissioner (Appeals) under the Compounded Levy Scheme.Summary:The Department appealed against the penalty reduction from Rs. 18,78,800/- to Rs. 75,000/- under the Compounded Levy Scheme. The respondent, a manufacturer of iron and steel products, faced delay in paying amounts from April 1999 to March 2000. The Original Authority imposed the penalty under proviso 4(ii) of Rule 96 ZP(3) of Central Excise Rules, 1944. On appeal, the Commissioner (Appeals) reduced the penalty considering the payment of the entire duty involved along with interest. The Department argued that the penalty should be equal to the delayed duty payment as per Rule 96 ZP(3). However, the Tribunal referred to precedents and held that the penalty should be proportionate to any gain made by the party. The Tribunal found the reduced penalty of Rs. 75,000/- reasonable and upheld the Commissioner (Appeals) decision, rejecting the Department's appeal.In conclusion, the Tribunal upheld the penalty reduction decision by the Commissioner (Appeals) under the Compounded Levy Scheme, emphasizing that the penalty should be commensurate with any gain made by the party facing delayed duty payment.
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