CCE Vs. RAMA WOOD CRAFT (P) LTD.

JUDGEMENT

(1.) THIS appeal has been referred to Larger Bench on the following question:

(2.) IT may be stated at the very outset that Rs. 5000/ - was the penalty prescribed in Rule 173Q of the Central Excise Rules, 1944, corresponding to Rule 25 of the Central Excise Rules 2002. Rule 25 of the 2002 Rules provides for the (alternate) penalty of Rs. 10,000/ -. By amendment under Notification No. 8/2007 dated 1.3.2007, effective from 11.5.2007, the amount Rs. 2000/ - has been substituted for Rs. 10,000/ -. Reference to the amount or the rule in the reference order (supra) or in this order hereinafter may be understood accordingly mutatis mutandis.

(3.) THE issue has been referred to Larger Bench in view of two conflicting decisions of the Single Member Bench in CCE, Lucknow v. Kisan Sahkari Chini Mills Ltd. and CCE, Lucknow v. Sarjoo Sahkari Chini Mills 2006 (204) ELT 478 (Tribunal). In the former it was held that no minimum amount of penalty has been prescribed in Rule 173Q of the Central Excise Rules, 1944. In the latter case it was held that penalty of Rs. 5000/ - is minimum penalty which is required to be imposed under the rule.