Whether Rs.5000/- is a minimum penalty that is required to be imposed in terms of Rule 25 of the Central Excise Rules, 2002 ?
Even where a minimum penalty is prescribed, the authority has discretion to impose a lesser penalty depending on the facts and circumstances of the case.
The amount mentioned in Rule 173Q(1) of the 1944 Rules or Rule 25(1) of the 2002 Rules is the maximum, and not the minimum. The amount shall not exceed the duty determined; if it is more than rupees five thousand, or rupees five thousand if the duty determined is less than rupees five thousand.
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI
SERVICE TAX APPEAL NO.464 OF 2007-SM(BR)
[Arising out of order-in-appeal No. 34/CE/BPL/2007 dated 18.6.2007 passed by the Commissioner of Central Excise (Appeals), Bhopal]
Date of Hearing: 17.03.2008
Date of Decision: 07 .04.2008
CCE, Bhopal
Versus
M/s. Rama Wood Craft (P) Ltd.
O R D E R
Per Justice S.N.Jha:
1. This appeal has been referred to Larger Bench on the following question :-
“ Whether Rs.5000/- is a minimum penalty that is required to be imposed in terms of Rule 25 of the Central Excise Rules, 2002 ?”
