9911796707
TMI Blog2023 (8) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the order dated 23.03.2021 passed by the Assistant Commissioner confirming the demand of central excise duty under section 11A of the Central Excise Act, 1944 [the Excise Act] with interest but as duty and interest was deposited, the amount has been appropriated. The Assistant Commissioner also imposed penalty under section 11AC of the Excise Act equivalent to the amount of duty. This appeal is confined to the challenge to the imposition of penalty. 2. The appellant contends that the prices of the goods manufactured by the appellant are under the control of the Government of India and the Government of India also gives subsidy as the selling price of the fertilisers manufactured is always lesser than the cost of production. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- with interest of Rs. 49,612/- on 16.11.2019. 4. A show cause notice dated 10.12.2019 was, however, issued to the appellant proposing to appropriate the duty and interest deposited by the appellant with penalty equal to the amount of duty under section 11AC of the Excise Act. 5. The appellant filed a reply to the show cause notice and contended that as there was no wilful mis-statement or suppression of facts, much less with an intent to evade payment of excise duty, no penalty could have been imposed, more particularly when the appellant is a Central Public Undertaking with majority of the shareholdings in the name of the President of India. 6. The Assistant Commissioner, however, by order dated 23.03.2021 confirmed the imposition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2021, I observe that the adjudicating authority has held that there has been fraud/collusion/wilful misstatement/suppression of facts. In this regard, I observe that the short payment of duty came to the knowledge because of the departmental audit; that it is only on being pointed out by the audit team, that the appellant deposit short paid duty amounting to Rs. 1,54,970/- along with interest of Rs. 49,612/-vide challans dated 16.11.2019. Thus, I find that the ingredients to invoke Section 11A of the Act are present in this case which has led to confirmation of demand of Rs. 1,54,970/-. As these very ingredients find mention in Section 11AC of the Act, I find that the Section 11AC would also get attracted in the instant case. Hence, I fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing for the department have been considered. 11. The appellant has given reasons as to why the excess excise duty paid by the appellant was adjusted in the excise duty payable in the month of June 2017. According to the appellant, Goods and Service Tax was introduced with effect from 1 July 2017 and the appellant believed that it was better to adjust the excess excise duty paid. The appellant has also stated that, in the facts and circumstances of the present case, it cannot be alleged that there was any suppression of facts with intent to evade payment of excise duty. The Assistant Commissioner, in the order dated 23.03.2021, has merely observed that since the appellant in reply to the show cause notice had not produced any document/proof ..... X X X X Extracts X X X X X X X X Extracts X X X X
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