2017 (7) TMI 529 – GUJARAT HIGH COURT – 2017 (356) E.L.T. 199 (Guj.) , 2017 (7) G. S. T. L. 431 (Guj.) – Levy of penalty u/s 28 of the FA, 1994 at a reduced rate of 25% – authority of the Commissioner or the Tribunal to reduce the penalty – Held that: – reliance placed in the case of Commissioner of Central Excise vs. GP Prestress Concrete Works [2012 (8) TMI 933 – GUJARAT HIGH COURT], where it was held that the assessee is required to be given an option by the adjudicating authority whether he is willing to pay the duty with interest and 25% penalty within 30 days from the date of adjudication. Whenever such option is not given, the facility of paying reduced penalty by fulfilling the condition of deposition of the same with interest with
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only if the duty determined under Section 73(2), interest payable thereon under Section 75 and penalty at 25% of the duty determined under Section 73(2) has been paid within thirty days from the date of communication of the order of the Central Excise Officer determining duty payable under Section 73(2) of the Finance Act, 1994? 2. The issue pertains to levy of penalty under Section 28 of the Finance Act, 1994 at a reduced rate of 25%. According to the department, the penalty is compulsory and the Commissioner or the Tribunal had no authority to reduce the same. 3. We may, however, notice that in case of Commissioner of Central Excise vs. GP Prestress Concrete Works reported in 2015 (323) ELT 709 and in the case of Commissioner of C. Ex, A
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of availing reduced penalty on depositing amount with interest within thirty days. When the assessee approached the Commissioner, he granted such option of paying reduced penalty, if deposited within thirty days. He had provided as under: (b) Under para (iv) following shall be added towards the end However M/s. Metro Security Services shall have option to pay penalty at reduced rate of 25% of RS.47,85,269/- provided that reduced penalty along with tax and interest is paid within 30 days of receipt of this Order in Appeal. 5. The department is aggrieved by this order and therefore approached the Tribunal. The Tribunal relying on the decisions in the case of GP Prestress Concrete Works (supra) and Ratnamani Metals and Tubes Ltd. (supra) dismi
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