Appellate tribunal upholds duty demand, penalty imposed for fabric removal. Payment options granted.

The appellate tribunal confirmed a duty demand of Rs.1,44,987 with interest and imposed a penalty equivalent to the duty amount on the appellant for alleged involvement in clandestine removal of processed fabrics. The tribunal granted the appellant the option to pay 25% of the penalty within 30 days, provided interest was also paid within the same period. Failure to comply would result in a penalty increase to 100% of the duty demanded. The decision favored the appellant's request for a penalty reduction option, emphasizing timely payment to avoid escalation and ensuring compliance with excise duty regulations.

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Issues:
1. Duty demand confirmation with penalty for clandestine removal of processed fabrics.
2. Appellant's request for an option to pay 25% penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:
Issue 1: The appellate tribunal confirmed a duty demand of Rs.1,44,987 with interest and imposed a penalty equivalent to the duty amount on the appellant, alleging involvement in clandestine removal of processed fabrics. The appellant had already paid the entire duty amount but sought an option to pay only 25% of the penalty. The tribunal noted that the lower authorities did not provide the option for the appellant to pay a reduced penalty in their orders. Referring to previous decisions, the tribunal granted the appellant the option to pay 25% of the duty as penalty within 30 days, provided that the interest due was also paid within the same period. Failure to comply would result in an increase of penalty to 100% of the duty demanded.

Issue 2: The appellant, though absent during the proceedings, had submitted written representations. The tribunal acknowledged the appellant's request for the penalty reduction option and decided in favor of granting the requested relief based on precedents and the absence of objection from the Revenue's representative. The tribunal exercised its authority to provide the appellant with the option to pay a reduced penalty, aligning with the principles established in previous cases. The decision clarified the timeline for payment and consequences of non-compliance, ensuring the appellant's obligation to pay interest promptly along with the reduced penalty amount.

In conclusion, the appellate tribunal's judgment addressed the duty demand confirmation and penalty imposition, granting the appellant the requested option to pay a reduced penalty percentage within a specified timeframe. The decision emphasized compliance with the payment terms to avoid penalty escalation and provided clarity on the consequences of non-payment. The tribunal's ruling balanced the interests of the appellant with the enforcement of excise duty regulations, reflecting a fair and reasoned approach to resolving the issues raised in the appeal.

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