High court reprieve for HipolinApril 19th, 2011 - 3:53 pm ICT by IANS
Gandhinagar, April 19 (IANS) The Gujarat High Court has rejected an appeal of the revenue authorities challenging an appellate tribunal’s decision to reduce the penalty on detergent manufacturer Hipolin Limited after it was found to have allegedly evaded excise duty.
In the order made available Tuesday, the bench comprising Justice Akil Kureshi and Justice Sonia Gokani dismissed the appeal challenging the Central Excise and Service Tax Appellate Tribunal’s (CESTAT) order of reducing the penalty imposed to 25 percent of duty.
Revenue authorities had raised the question before the bench whether the CESTAT could reduce the penalty despite a clear legal provision in the Central Excise Act of 1944.
Central excise officers allegedly found Hipolin Limited evading excise duty by way of clandestine removal of goods.
The department had then issued a show cause notice to the company and demanded dues and penalty under the Central Excise Act.
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