Statutory option to pay duty, interest and reduced penalty within 30 days was added to avoid full penalty.

The order was rectified to include the statutory option for the assessee to pay duty, interest and 25% of the duty as penalty within 30 days, so as to avoid penalty equal to the duty under Section 11AC of the Central Excise Act, 1944. The Tribunal noted that neither lower authority had granted this option, and that the Tribunal and Gujarat High Court had recognised the power to extend it; the earlier order was therefore amended to add the requested paragraph.

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Issues: Whether the order required rectification by incorporating the option to pay duty, interest and 25% penalty within 30 days so as to avoid imposition of penalty equal to the duty under Section 11AC of the Central Excise Act, 1944.

Analysis: The order noted that neither lower authority had extended the statutory option to discharge duty with interest and 25% of the duty as penalty within 30 days. It further recorded that the Tribunal and the Gujarat High Court had recognised the power to extend such an option, and therefore the earlier order was required to be supplemented by adding the requested paragraph.

Conclusion: The rectification was allowed and the order was amended to grant the appellant the option to pay duty, interest and 25% penalty within 30 days, failing which penalty equal to the duty would apply.

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