M/S. Sri Vignesh Textiles Vs. Cce, Coimbatore - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai |
| Nov-27-2009 |
| E/307 of 2007 |
| THE HONOURABLE DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER |
| M/S. Sri Vignesh Textiles |
| Cce, Coimbatore |
| Shri R. Balagopal, Conslt. for the appellant. Shri T.H. Rao, SDR, for the respondent. |
shri r. balagopal, ld. consultant, appearing for the appellants fairly states that the appellants are not contesting the duty liability which has been discharged well before the issue of show cause notice. however, he pleads for reduction in the penalty and waiver of the interest amount. 2. shri t.h. rao, ld. sdr, appearing for the department states that this is a case of clandestine manufacture and removal of goods and in such cases, in view of the ruling by the hon ble supreme court in the case of uoi vs. dharamendra textile processors - 2008 (231) elt 3 (s.c.), the penalty under section 11ac has to be mandatorily imposed and interest charged as no discretion is available under the law. 3. after hearing both sides and following the ratio of the hon’ble supreme court’s decision in the case of dharamendra textiles (supra), i hold that there is no discretion available with the tribunal to grant the prayer of the appellants for waiver of interest and reduction in the penalty amount. as such, the appeal is dismissed.
Shri R. Balagopal, Ld. Consultant, appearing for the appellants fairly states that the appellants are not contesting the duty liability which has been discharged well before the issue of Show Cause Notice. However, he pleads for reduction in the penalty and waiver of the interest amount.
2. Shri T.H. Rao, Ld. SDR, appearing for the department states that this is a case of clandestine manufacture and removal of goods and in such cases, in view of the ruling by the Hon ble Supreme Court in the case of UOI Vs. Dharamendra Textile Processors - 2008 (231) ELT 3 (S.C.), the penalty under Section 11AC has to be mandatorily imposed and interest charged as no discretion is available under the law.
3. After hearing both sides and following the ratio of the Hon’ble Supreme Court’s decision in the case of Dharamendra Textiles (supra), I hold that there is no discretion available with the Tribunal to grant the prayer of the appellants for waiver of interest and reduction in the penalty amount. As such, the appeal is dismissed.