TMI Blog2011 (1) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... und of appeal seeks relief in terms of Rule 25 of Central Excise Rules, 2002 read with Section 11AC - Rule 25 is subject to the provision of section 11AC implies that the penalty imposed under Rule 25 can never exceed the duty evaded which is the prescribed penalty under provisions of section 11AC. Rule 25 does not envisage that the penalty should be always equal to the duty short levied or short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the penalty from Rs.1,12,246/- to Rs.25,000/- after ignoring the provisions of Rule 15 (2) of Cenvat Credit Rules, 2004 and the provisions of Rule 25 of Central Excise Rules, 2002 read with Section 11AC of Central Excise Act, 1944. 4.1 Learned SDR submits that in respect of Rs.19,961/- relating to clearance of finished goods without accounting and without payment of duty which stands admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble High Court of Delhi in the case of M/s.K.P.Pouches Pvt.Ltd. reported in 2008 (228) ELT 31 (Del.) and submits that in respect of clearance of finished goods on which the duty involved amounting to Rs.19,961/- stands paid before issue of show cause notice, option to pay concessional penalty in terms of Section 11AC should have been extended by the original authority and in which case th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een extended to the assessee to pay concessional penalty of 25%. 8. As regards clearance of inputs as such, after reversal of the credit of CVD and education cess, the submissions on behalf of the respondents that it was, by mistake, that they have failed to reverse SAD component appears bonafide and the same has been rightly accepted by the Commissioner (Appeals). This omission does not warra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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