Appellate Tribunal upholds reduction of penalty to Rs. 5,000 under Central Excise Act

The Appellate Tribunal CESTAT, Mumbai dismissed the Revenue's appeal for enhancement of penalty under Section 11AC of the Central Excise Act, 1944. The Tribunal upheld the Commissioner (Appeals)'s decision to reduce the penalty to Rs. 5,000, citing the absence of mens rea on the respondent's part and the amount involved being below Rs. 50,000.

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The Appellate Tribunal CESTAT, Mumbai heard an appeal by the Revenue for enhancement of penalty from Rs. 5,000 under Section 11AC of the Central Excise Act, 1944. The Commissioner (Appeals) had reduced the penalty to Rs. 5,000, but the Tribunal rejected the appeal as there was no mens rea on the part of the respondent for taking Cenvat Credit and the amount involved was below Rs. 50,000.

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