- (1.) In the instant matter, special leave to appeal was granted limited to the question of penalty.
(2.) In this behalf, we may point out that in the Show Cause Notice issued by the Department, three duty demands were raised which were as follows :- (1) Duty demand of Rs. 26,94,890/- based on Delivery Challans. (2) Duty demand of Rs. 13,49,830/- based on duplicate invoices. (3) Duty demand of Rs. 79,39,162/- based on two diaries seized from one Shri Maheshkumar Satyanarayan Jhawar and on his statement which was recorded during the investigation.
(3.) The Show Cause Notice was adjudicated upon and the demands were confirmed and on that basis, penalty equivalent to the duty demand was also imposed. The Tribunal, in appeal, set aside the duty demand of Rs. 79,39,162/- but maintained the other two duty demands. However, on that basis, the penalty is reduced to Rs. 20 lakhs.;