2002 (11) TMI 650

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....t. [Order (Oral)]. - The short issue that arises for consideration in this appeal with regard to imposition of equal amount of penalty of Rs. 2,22,745/- under Section 11AC of the Central Excise Act. 2. The Departmental officers seized 8 bags of cotton yarn on cones weighing 400 kgs valued at Rs. 43,384/- on interception of a jeep in which these goods were carried. As a follow-up action th....

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....ments had been made and prepared. However, this explanation was not accepted and hence the amount has been appropriated in the PLA which was later entered and equal amount of penalty has been imposed under Section 11AC. The prayer of the appellant that penalty cannot be imposed and if penalty is imposed it has only commensurate to the value of 8 bags of cotton yarn seized in the jeep is required t....

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.... that adjudicating authority need not impose mandatory penalty equal to the quantum of the duty. He submits that the duty liability escaped payment was only to the extent of Rs. 7,982/- on the quantum of 8 bags which was valued at Rs. 43,384/-. He submits that the mandatory penalty under Section 11AC is required to be scaled down on the basis of duty liability only on 8 bags seized from the jeep. ....

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....ocedural lapse pertaining to non-entries in the register there is a specific provision for imposing penalty and that is Section 226 of CE Rules. The said rule was not invoked for imposing penalty for non-debiting the amount in PLA with regard to 242 bags of which the documentation had been completed. Therefore the authorities have committed an error in imposing penalty on the value of goods involv....