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TMI Blog2012 (10) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... ving option to the Assessee under the Proviso to section 11AC as the benefit of payment of reduced penalty can be availed by the assessee at the appellate stages also and it is not the import of the said provision that such benefit can be availed of only within 30 days from the communication of original order - in favour of assessee. - 1217 OF 2011 - - - Dated:- 6-8-2012 - V. M. SAHAI AND N. V. ANJARIA, JJ. R.J. Oza for the Appellant. Dhaval Shah for the Respondent. JUDGMENT N.V. Anjaria, J. - The Department has filed the present appeal under section 32G of the Central Excise Act, 1944 questioning the order dated 18.02.2011 of the Custom, Excise and Service Tax Appellate Tribunal, West Zonal Branch, Ahmedabad in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority imposed penalty equal to the duty amount and the director of the unit was also subjected to penalty under Rule 26 of the Central Excise Rules, 2002. 3.1 The assessee preferred appeal before the Commissioner (Appeals), Central Excise, who upheld the finding regarding clandestine manufacture and removal of excisable goods without payment of duty and accordingly confirmed the duty. He, however, reduced the amount of penalty considering the fact that the assessee had immediately deposited the amount of duty. Thereafter, the respondent preferred appeal before the Custom, Excise and Service Tax Appellate Tribunal against the order of the Commissioner. The Tribunal gave option to the assessee to deposit the entire duty, interest and 25% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso: Provided also that where the duty determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the Court, then, for the purposes of this section, the duty, as reduced or increased, as the case may be, shall be taken into account: Provided also that in case where the duty determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the Court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of duty so increased, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so, the matters need to be remanded for adjudging penal liabilities in terms of Apex Court's judgment in the case of Dharamendra Textiles, along with extending option in terms of 1st and 2nd Provisos to Section 11AC. In such a scenario, the period of 30 days to deposit the dues along with 25% of penalty shall start running from the date of passing fresh orders by the adjudicating authority. However, instead of adopting the above route, penalties can be enhanced at appellate level with option to deposit reduced penalties along with other dues within a period of thirty days from the date of passing appellate orders, in terms of 3rd and 4th Provisos to Section 11AC." 5.1 This High Court in CCE C v. Harish Silk Mills 2010 (255) ELT 393 (Guj. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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