This Civil Appeal concerns quantification of penalty under Section 11AC of
the Central Excise Act, 1944. The issue is squarely covered by the judgment of this
Court in the case of Union of India Vs. Dharmendra Textile Processors & Ors.,
reported in 2008 (13) SCALE 233.
At this stage, learned counsel for the assessee states that he is challenging
the very levy of penalty on the facts and circumstances of the case. He seeks time to
put in counter. His application is rejected for the simple reason that in this Civil
Appeal, we are concerned with the quantum of penalty and not with the levy of
penalty. As regards levy of penalty, the Tribunal has rejected the contention of the
assessee that penalty is not leviable. However, that decision of the Tribunal has not
been challenged by the
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assessee. Hence, our order allowing this Civil Appeal will not come in the way of the
assessee challenging the order of the Tribunal on the question of imposition of
penalty. However, we express no opinion on the merits of that case.
Subject to above, Civil Appeal is allowed.
(AFTAB ALAM) New Delhi, January 16, 2009.