2001 (7) TMI 174

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....r : G.R. Sharma, Member (T)]. - These are 3 appeals. One appeal has been filed by M/s. Monica Electronics Limited. Two appeals have been filed by Shri V.K. Gupta and Ms. S.S. Mirchandani. Since all these appeals arise out of the same order, therefore, they were heard together and are being disposed of by this common order. 2.The facts of the case briefly stated are that M/s. Monica Electronics ....

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....firmed the demand of duty amounting to Rs. 50,93,987/- on M/s. MEL. He also imposed a penalty of Rs. 50,93,987/- under Rule 173Q read with Section 11AC. He held that M/s. MEL shall have to pay interest of an appropriate amount under Section 11AB. He also imposed penalties of Rs. 2 lakhs on Ms. S.S. Mirchandani, Rs. 1 lakh on Shri V.K. Gupta and Rs. 2 lakhs on Shri Ratnesh Mishra. 3.Demand of du....

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....nt of penalty under Section 11AC and Rule 173Q, therefore, the penalty cannot be sustained and prays that the orders imposing penalty on the company may be set aside. 5.In regard to personal penalties imposed on Ms. S.S. Mirchandani and Shri V.K. Gupta, ld. Counsel submits that it was a case of valuation under the Rules and interpretation of various Sections and Rules of Central Excise were in ....

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....e has nothing to add. Regarding imposition of penalty on Shri V.K. Gupta and Ms. S.S. Mirchandani, ld. SDR submits that the manufacturing unit had deliberately created a marketing unit and had reduced the assessable value and thus they knew clearly that the goods were liable to confiscation. He, therefore, submits that the penalty imposed on these 2 persons is sustainable in law. 8.Heard the ri....