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TMI Blog2009 (4) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... under proviso to Section 11A(l) of Central Excise Act, 1944; interest u/s 11AB; penalty equal to duty u/s 11AC read with Rule 25 of Central Excise Rules; personal penalty on the director and other co-notices under Rule 26 of Central Excise Rules. 2. On appeal by the respondent and its director, Commissioner(Appeals) vide impugned OIA dt. 21-8-2008 modified the OIO by (i) ordering levy of interest @ 13% u/s 11AB; (ii) upholding penalty equal to duty u/s 11AC but allowed reduction in penalty amount to 25% in terms of proviso to Section 11AC, if paid within 30 days from the date of OIA and (iii) upholding the penalty on Director others u/r 26 as per OIO. 3. Revenue is in appeal against the order and seeks enhancement of penalty to 100% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f communication of the order of Central Excise officers determining such duty. He submits that in view of the proviso 4 to Section 11AC which provides for benefit of reduction of penalty in respect of the enhanced penalty amount, now penalties has to be 100%. He also submits that the view of the Commissioner (Appeals) that harmonious construction requires to consider Section 11AC and Section 35F together also is not correct in view of the fact that Section 35F does not provide blanket power to appellate authority to grant waiver of pre-deposit irrespective of the nature and gravity of the case. He submits that in view of the clear provision of the law which requires duty interest and penalty to be paid within 30 days of the date of communic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. [2008 (228) E.L.T. 31 (Delhi)], if the adjudicating authority did not explicitly state the option available to the assessee under Section 11AC of the Act and the choices are not made known to the assessee, the benefit of reduction in penalty has to be allowed. In this case also it is seen that there is no specific observation in the OIO that penalty shall stand reduced to 25% if paid within 30 days from the date of communication of the order. In view of the decision of Hon ble High Court of Delhi and in view of the decisions already given by this Tribunal, the appeal filed by the Revenue for enhancement of penalty fails and the order of the Commissioner (Appeals) is upheld. 8. In view of the above discussion, the interest rate is e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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