2017 (1) TMI 837 - AT - Central Excise

Waiver of Penalty - duty and penalty paid before adjudication - Held that - the appellant has paid the entire amount of duty and penalty as demanded in the impugned Show Cause Notice. Further, the appellant has paid 25% of the penalty impose under Section 11AC of Central Excise Act, 1944 before adjudication - as provided under Section 11AC of Central Excise Act, 1944, during the material period that if penalty imposed is paid within thirty days of such imposition then penalty stands reduced to 25% the entire payable penalty the appellant - Since, the duty, interest already paid, the proceedings of said SCN dated 09/07/2008 are concluded

Summary

Issues:
- Appeal against Order-in-Appeal No. 353-CE/APPL/KNP/2009
- Failure to appropriate deposited amount against un-quantified demand of interest
- Payment of penalty equivalent to 25% duty confirmed
- Submission of required duty before adjudication by Original Authority

Analysis:
The appellant, M/s The Oberoi Amarvilas, filed an appeal against Order-in-Appeal No. 353-CE/APPL/KNP/2009 passed by the Commissioner of Central Excise & Customs (Appeals), Kanpur. The appellant was issued a Show Cause Notice proposing a demand of Central Excise duty, interest, and penalty under Section 11AC of the Central Excise Act, 1944. The Original Authority confirmed the demand, appropriated the duty already paid, and ordered the appellant to pay interest and penalty. The appellant appealed before the Commissioner (Appeals) arguing that the Original Authority failed to appropriate the deposited amount against the un-quantified demand of interest and that they had already paid a penalty equivalent to 25% of the duty confirmed. The Commissioner (Appeals) rejected the appeal, leading the appellant to appeal before the Appellate Tribunal CESTAT ALLAHABAD.

The appellant contended that they had paid the entire amount of duty and penalty as demanded in the Show Cause Notice. They also highlighted that they had paid 25% of the penalty imposed under Section 11AC of the Central Excise Act, 1944 before adjudication. The Tribunal, after considering the arguments, noted that the appellant had fulfilled the payment requirements as per the law. The Tribunal referred to Section 11AC of the Central Excise Act, 1944, which allows for a reduction in penalty if paid within thirty days of imposition. Since the duty and interest were already paid, the Tribunal concluded that the proceedings based on the Show Cause Notice dated 09/07/2008 were concluded. Consequently, the appeal was allowed, and the appellant was entitled to any consequential relief as per the law. The judgment was pronounced in court by Mr. Anil G. Shakkarwar, Member (Technical) of the Appellate Tribunal CESTAT ALLAHABAD.