Penalty enhancement requires stronger evidence of complicity; Revenue failed to justify interference with the existing penalty quantum.

Penalty enhancement on the Revenue's appeal was rejected because the Commissioner had already weighed the evidence and imposed penalty after considering the record. The dispute centred on alleged discrepancies in the declared premises, invalid invoices and the extent of CENVAT credit passed on, but no further evidence showed a wider conspiracy or additional complicity by the dealer beyond the lease and registration issues. In the absence of a stronger evidentiary basis, the Tribunal held that interference with the penalty quantum was not warranted, and the Revenue's request for enhancement failed.

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Issues: Whether the penalty imposed on the respondent dealer was liable to be enhanced on the Revenue's appeal.

Analysis: The respondent had been granted dealer registration, but the Department later found discrepancies in the declared premises and treated the invoices as invalid. The Tribunal noted, however, that the Commissioner had already considered the evidence and imposed penalty on the respondent after weighing the material on record. The only basis pressed for enhancement was the magnitude of the CENVAT credit passed on. No further evidence was brought to establish a wider conspiracy or additional complicity on the part of the respondent beyond the disputed lease and registration particulars. In the absence of any stronger evidentiary basis, interference with the quantum of penalty was not warranted.

Conclusion: The request for enhancement of penalty was rejected and the Revenue's appeal failed.

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