Reduced penalty under Section 11AC cannot be reopened in review absent apparent error or new legal issue.

Where the adjudicating authority did not grant the assessee the statutory option under Section 11AC to pay duty, interest and reduced penalty within the prescribed period, the Tribunal's approach in following the settled judicial line was upheld. The review court found no error apparent on the face of the record and no new substantial question of law to justify reopening the appeal. The Revenue's challenge therefore failed, and no ground for review was made out.

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Issues: Whether the Tribunal was in granting the assessee the benefit of reduced penalty under Section 11AC without the assessee having paid duty, interest and 25% penalty within 30 days from communication of the adjudication order, and whether any error warranting review was made out.

Analysis: The Court noted that its earlier decisions had consistently taken the view that where the adjudicating authority does not grant the assessee the statutory option to pay duty, interest and reduced penalty within the prescribed period, the matter may be remanded or the benefit of reduced penalty may be sustained in accordance with that approach. The Tribunal, after remand, had proceeded on the same footing and applied the settled line of decisions. The review court found no error apparent on the face of the record and no basis to reopen the conclusion already reached in the appeal.

Conclusion: No ground for review was made out; the Revenue's challenge failed.

Ratio Decidendi: Where the authorities do not give the assessee the prescribed option under Section 11AC to avail reduced penalty, and the Tribunal follows the consistent judicial view on that issue, no review lies in the absence of any apparent error or new substantial question of law.

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