2004 (11) TMI 511

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....hri K.K. Anand, Advocate, for the Respondent. [Order per : V.K. Agrawal Member (T)]. - Revenue has filed the present appeal against the Order-in-Appeal No. 381/04, dated 27-5-2004 by which the Commissioner (Appeals) has reduced the penalty imposed on the respondents, M/s. J.S. Khalsa Steels Ltd. from Rs. 12,50,000/- to Rs. 20,000/-. 2. Shri O.P. Arora, learned S.D.R., submitted that ....

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....on of the Tribunal in the case of Sadashiv Castings, 2004 (165) E.L.T. 362. The learned S.D.R., further, submitted that the entire scheme of levying the Central Excise duty under Sec. 3A of the Central Excise Act, has been held to be constitutional by the Supreme Court in the case of Supreme General Steel Mills, 2001 (133) E.L.T. 513 (S.C.); that penalty equal to the amount of duty is imposable on....

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....pril, 1999 and the interest was paid by them in March, 2001. He relied upon the decision of the Supreme Court in the case of State of Madhya Pradesh v. B.H.E.L, 1998 (99) E.L.T. 33 (S.C.) wherein the Supreme Court has held that the expression "shall be liable to pay penalty equal to ten times the amount of entry tax" lays down only the maximum amount of penalty which could be levied and the Assess....

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....enalty of Rs. 5,000/- whichever is greater. The contention of the Revenue is that the penalty has to be equal to the amount of duty not paid/short-paid and there is no discretion for imposing lesser amount of penalty. The learned Advocate, on the other hand, has relied upon the decision of the Supreme Court in the case of B.H.E.L. (supra) wherein the Supreme Court has interpreted a similar express....