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TMI Blog2025 (2) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 61,06,692/- was deposited by Balaji under the head "other receipts" as representing towards the penalty. Although no penalty was imposed on them, it was deposited apparently towards the anticipated penalty. Thereafter, once the impugned order was passed, the appellant adjusted this amount against the 25% penalty to be deposited within 30 days. Thus, it fulfilled the condition to avail the benefit of reduced penalty of 25%. If this amount is adjusted towards the deposit of duty, naturally it cannot also be accounted towards penalty and in which case the sum paid as penalty within 30 days would be only of Rs. 72,14,714/- which is much lower than the 25% of the confirmed duty. Conclusion - The impugned order is correct in not adjusting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 174 (2) of the CGST Act, 2017. 4. During the course of investigation itself Balaji deposited Rs. 4,07,11,279/- towards duty and Rs. 88,19,908/- towards interest. It also deposited an amount of Rs. 61,06,692/- towards penalty. After adjudication, the Additional Director General confirmed the duty of only Rs. 5,32,85,623/- along with interest and imposed a penalty of equal amount under section 11AC of the Central Excise Act, 1944 Excise Act. As per section 11AC of the Excise Act, if the amount of duty, interest and penalty are deposited within 30 days of the communication of the order of the central excise officer, only 25% of the duty needs to be paid as penalty. Otherwise, 100% of the duty has to be paid as penalty. The Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty Rs.4,07,11,279/- 2 Amt deposited during investigation towards interest Rs.88,19,908/- 3 Amt deposited during investigation towards penalty Rs.61,06,692/- 4 Total amount deposited during investigation Rs.5,56,37,879/- 5 Demand confirmed in impugned order Rs.5,32,85,623/- 6 Balance remaining (excess deposit) Rs.23,52,256/- 7 Interest payable(23,52,256+90,84,748) Rs.1,14,37,004/- 8 Penalty @ 25% Rs.1,33,21,406/- 9 Total amount payable Rs.7,80,44,033/- 6. Learned counsel for the appellants submitted that when the Commissioner appropriated the amounts paid during investigation towards duty and interest in the impugned order, there was no logical reason for him to not to have appropriated the amount paid as penalty t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve considered the submissions advanced by both sides on this issue. 9. It is undisputed that the amount of Rs. 61,06,692/- was deposited by Balaji under the head "other receipts" as representing towards the penalty. Although no penalty was imposed on them, it was deposited apparently towards the anticipated penalty. Thereafter, once the impugned order was passed, the appellant adjusted this amount against the 25% penalty to be deposited within 30 days. Thus, it fulfilled the condition to avail the benefit of reduced penalty of 25%. If this amount is adjusted towards the deposit of duty, naturally it cannot also be accounted towards penalty and in which case the sum paid as penalty within 30 days would be only of Rs. 72,14,714/- which is mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document, or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made thereunder like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater." 14. As can be seen, the penalty under Excise Rule 26 can be imposed for actions related to goods which were rendered liable for confiscation. In this case no goods were confiscated. 15. The second situation in which penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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