9911796707
TMI Blog2007 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2007 - - - Dated:- 11-7-2007 - [Order per: N.V. Dabholkar, J. (Oral)]. - The appeal is admitted on following substantial question of law: "Whether authorities under Central Excise Act/Rules can impose penalty either u/s 11AC or Rule 25, even if the assessee has paid non levy/short levy before issuance of show cause notice?" 2. During the course of arguments, we have realised an error t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o follow the ratio laid down by Punjab and Haryana High Court. 4. In the matter of Rashtriya Ispat Nigam Ltd. v. Commissioner of Central Excise, Visakhapatnam [2006 (161) E.L.T. 285 (Tri.-Bang.)], the Tribunal at Bangalore took a view that when party has already deposited the duty to the department prior to issue of show cause notice, there is no justification to impose penalty u/s 11AC as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aded that no discretion rests with the authority under the Act to reduce the amount of penalty under Rule 25 of the Central Excise Rules, 2000. This High Court observed thus: "So far as the first submission advanced by Mr. Desai with regard to interpretation of Rule 25 in the backdrop of Section 11AC of the Act is concerned, bare reading of Section 11AC and Rule 25 side by side would show that S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) to (d) has been committed or Rs. 10,000/-, whichever is greater. Thus, upper limit is either Rs. 10,000/- or equal to duty leviable, which ever is higher. There is no lower limit. 6. In the matter at hands, Section 11AC was not invoked by the department and penalty imposable under Rule 25 is discretionary. Although Assistant Commissioner, Central Excise Customs, Aurangabad-II Division w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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