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TMI Blog2017 (5) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... der any circumstances the department’s proposal to impose penalty of 100% of the duty does not hold good - even as per Section 11AC(1)(c) penalty of 25% is only payable and not 100% - appeal dismissed - decided against Revenue. - E/811/09 - A/86601/17/SMB - Dated:- 31-3-2017 - Mr Ramesh Nair, Member(Judicial) Shri. N.N. Prabhudesai, Superintendent (A.R.) for the Appellants Shri. Jayant Kumar, Advocate for the Respondent ORDER The Revenue filed this appeal against Order of the Commissioner(Appeals) whereby Commissioner (Appeals) reduced the penalty on the respondent from equal amount of duty to 25% of the total penalty considering the provisions of Section 11A(1A) of Central Excise Act, 1944. As per the grounds of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave paid the amount required under Section 11AC i.e. entire duty, interest and 25% penalty. There is delay in payment of the said amount which is procedural lapse, since entire amount was paid before adjudication of the case merely because of the delay, substantial benefit provided under Section 11A(1A) cannot be denied. He alternatively submits that in any case penalty of 100% cannot be imposed in the fact of the present case for the reason that respondent have paid entire duty, interest and 25% penalty before adjudication of the show cause notice. Even as per clause (c) of Section 11AC(1) if the duty, interest and 25% penalty is paid within the 30 days from the date of adjudication order penalty shall stand reduced to ₹ 25%. With th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the issue of show cause notice or within thirty days of issue of show cause notice, no penalty shall be payable by the person liable to pay duty or the person who has paid the duty and all proceedings in respect of said duty and interest shall be deemed to be concluded; (b) where any duty as determined under sub-section (10) of section 11A and the interest payable thereon under section 11AA in respect of transactions referred to in clause (a) is paid within thirty days of the date of communication of the order of the Central Excise Officer who has determined such duty, the amount of penalty liable to be paid by such person shall be twenty-five per cent. of the penalty imposed, subject to the condition that such reduced penalty is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest payable thereon under section 11AA in respect of transactions referred to in clause (c) is paid within thirty days of the date of communication of the order of the Central Excise Officer who has determined such duty, the amount of penalty liable to be paid by such person shall be twenty-five per cent. of the duty so determined, subject to the condition that such reduced penalty is also paid within the period so specified. As per the facts of the present case, respondent s case is squarely covered by above clause (c) of Section 11AC(1) therefore under any circumstances the department s proposal to impose penalty of 100% of the duty does not hold good therefore I am of the clear view that even as per Section 11AC(1)(c) penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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