M/S. Cipla Industries vs C.C.E., Delhi-Ii

1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? Yes 3. Whether Lordships wish to see the fair copy of the order? Seen 4. Whether order is to be circulated to the Department Authorities? Yes

Appeal Nos.E/60393, 60397 & 60680/2013-EX[SM]

[Arising out of Order-in-Appeal Nos.149-151/CE/D-II/2013, dated 27.08.2013 passed by the C.C.E.(Appeals), Delhi-II]

Mr. Ashutosh Kapoor,

Mr. Vishal Khanna

M/s. Cipla Industries Appellant

Vs.

C.C.E., Delhi-II Respondent

Appearance

Mr. Janu Mishra, Advocate - For Appellant

Mr. GR Singh, DR - For Respondent

CORAM: Honble Mr. S.K. Mohanty, Member (Judicial)

Final Order Nos.53990-53992/2015, dated 15.09.2015

Per Mr. S.K. Mohanty :

The grievance of the appellants in these appeals is that the imposition of redemption fine of approximately 25% of the value of the goods is quite high, since the case of Revenue lies on the narrow compass of non-maintenance of proper records. Further the contention of the appellants is that the imposition of penalties is also on the higher side, in view of the fact that the entire duty was deposited by the appellant company, before the issue of Show Cause Notice, and the interest attributable to the said duty along with 25% of penalties were also paid.

2. Heard both sides and examined the records.

3. It is an admitted fact that the appellant company in this case, has paid the duty along with applicable interest and 25% of the penalty, and that the appellant is not contesting the demand confirmed by the authorities below. In these appeals, the only prayer of the appellants is to reduce the redemption fine and the personal penalties imposed in the adjudication order. I find from the available records that the charges levelled against the appellant have not been contested on merits and also the appellant has deposited the demand of duty, along with interest and part of the penalty amount.

4. Considering the above facts, I am of the view that the ends of justice will be met if the redemption fine and personal penalties are reduced. Therefore, the redemption fines are reduced from Rs.3,50,000/- to Rs.1 lakh and from Rs.35,000/- to Rs.15,000/- respectively, and the penalties imposed on the directors are reduced from Rs.2 lakhs to Rs.75,000/- each.

5. In the light of the discussions, the appeals filed by the appellants are partly allowed to the above extent.

[Operated portion pronounced in the open court]

(S.K. Mohanty)

Member (Judicial)

SSK

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