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2012 (4) TMI 509 - AT - Central ExciseReduction in penalty u/s 11AC - benefit of payment of 25% of Central Excise duty - Held that - Since the assessee has not filed any appeal and is not disputing the order in appeal imposing penalty under Section 11AC, the order of the first appellate authority has to be upheld, as there is no dispute as to the fact that the amount of Central Excise duty which has been confirmed by the adjudicating authority was under the first proviso to Section 11A of Central Excise Act, 1944. At the same time I agree with the learned counsel s submission that even if Section 11AC penalty is imposed, the benefit of payment of 25% of Central Excise duty which has been confirmed by the adjudicating authority, as provided under Section 11AC, should be extended to the appellant - Following decision of M/s. Akash Fashion Prints Pvt. Limited 2009 (1) TMI 113 - GUJARAT HIGH COURT - Decided partly against Revenue.
Issues:
Appeal against imposition of penalty under Section 11AC of the Central Excise Act, 1944. Analysis: The Revenue filed an appeal against the order of the Commissioner (Appeals) regarding the imposition of a penalty of Rs. 15,000 under Section 11AC of the Central Excise Act, 1944. The duty confirmed under the first proviso to Section 11A1 was Rs. 47,878. The Revenue argued that the penalty should be equivalent to the confirmed duty amount. The Tribunal noted that the assessee did not file any appeal or cross objection against the Revenue's appeal. As a result, the order of the first appellate authority imposing the penalty under Section 11AC was upheld. The Tribunal also acknowledged the benefit of payment of 25% of the confirmed duty under Section 11AC, citing a judgment of the Hon'ble High Court of Gujarat in a previous case. The Tribunal agreed with the learned counsel's submission that the appellant should be eligible for the benefit of paying 25% of the confirmed duty as penalty, as per the law laid down by the Hon'ble High Court of Gujarat in a specific case. Consequently, the appellant was directed to deposit 25% of the duty liability within 30 days to avail of the provisions of Section 11AC. It was explicitly stated that failure to comply with this directive would result in the appellant being liable to pay the entire duty liability as a penalty. The appeal filed by the Revenue was disposed of in accordance with the directions provided in the judgment.
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