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TMI Blog2016 (2) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... llant immediately after the detection of the mistake, along with interest. The demand of interest is in the nature of a penal action. I fully agree with the learned advocate that in such a scenario no other proceedings should have been initiated against the appellant. The legislative intent for creation of the said sub-section is to avoid any futile litigation, which purpose stands defeated by the lower authorities by issuing show cause notice to the appellant. Having said so we set aside the impugned orders of the authorities below upholding the penalties imposed under Rules 25 and 26 of the Central Excise Rules. Inasmuch as penalties stand set aside, imposed in terms of the above Rule, no infirmity can be found for non-imposition of pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of ₹ 6,85,930/- (Rupees Six Lakhs Eighty Five Thousand Nine Hundred and Thirty only) was paid by them along with interest on 25-4-2007 itself. The said fact was reflected by them in the monthly return filed in May, 2007. 4. On the above basis appellant was served with a show cause notice on 27-2-2008 proposing imposition of penalties upon them in terms of Section 11AC and on the other two assessees being Managing Partner and Partner, for imposition of penalties under Rule 26 of Central Excise Rules. The original adjudicating authority imposed penalty to the extent of 100% of duty, in terms of Section 11AC. In addition he imposed penalty of ₹ 25,000/- (Rupees Twenty Five Thousand only) on the Mikron Tooling in terms of Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion by the Revenue within a period of one month from the date of detection and the said fact was reflected in the return filed in May, 2007. As per the provisions of Section 11A(2B) of Central Excise Act where duties not levied are paid by an assessee on his own ascertainment of such duty or on the basis of duty ascertained by a Central Excise Officer before service of notice on him, there will be no show cause notice in terms of Section 11A(1). However as per the explanation attached to the said Section, the same is not applicable where the non-payment of duty or short payment of duty is on account of any wilful misstatement or suppression of facts or contravention of any provisions with intent to evade payment of duty. As such it is the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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