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TMI Blog2017 (5) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... t circumstances, demand of interest is not sustainable - As duty already being paid and there is no demand of interest therefore, as per the provision of Section 11 AC of the Act, penalty on the main party is required to be imposed to the tune of 25% of the duty involved. Penalty is reduced to the 25% of the duty. With regard to the penalty on the Director, the Director was having full knowledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 and not received the goods which have been sold in the open marked. Therefore, the appellant immediately reversed the Cenvat Credit taken on said inputs. Later on, a show cause notice was issued to the appropriate amount which has been already paid and to demand interest and to imposed penalty on the both appellants. The matter was adjudicated, the amount already paid was appropriated and the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 AC of the Act that if assessee has paid interest and penalty and 25% of amount of duty as penalty within 30 days of the adjudication then penalty is reduced to 25%. Admittedly, appellant has paid interest and 25% of duty as penalty, therefore, the demand of interest required to be confirmed and penalty equivalent to the duty is imposable. He further submitted as it fact on record that goods hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and the said penalty is payable by the appellant within 30 days from today failing which the appellant is liable to pay 100% duty as penalty. 7. With regard to the penalty on the Director, I find that the Director was having full knowledge of the availment of the Cenvat Credit by the company therefore, the Director is also liable to penalized under Rules 26 of the Central Excise Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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