Statutory closure after notice payment bars further penalty proceedings under Central Excise law.

Payment of duty, interest and the prescribed 25% penalty on issuance of a show cause notice was treated as bringing statutory finality to the proceedings under the Central Excise Act. The adjudicating authority applied Section 11AC(1A) read with Section 11A(2) to close the matter, and the tribunal found no merit in the Revenue's challenge to that statutory closure. On that basis, further penalty proceedings against the assessee and other persons arising from the same cause were not sustained, and the dismissal of the appeal left the closure in favour of the assessee undisturbed.

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Issues: Whether, after payment of duty, interest and 25% of the duty as penalty on issuance of show cause notice, the proceedings could be treated as concluded so as to bar further penalty proceedings against the assessee and other persons under the Central Excise law.

Analysis: The order records that the adjudicating authority closed the proceedings by applying Section 11AC(1A) and Section 11A(2) of the Central Excise Act, 1944. The relevant proviso was treated as making the matter conclusive where the amounts specified upon notice are paid, and the tribunal found no merit in the Revenue's challenge to that view. No separate reason was accepted for excluding the effect of the statutory closure of proceedings.

Conclusion: The appeal was dismissed and the closure of proceedings in favour of the assessee was upheld.

Final Conclusion: The statutory payment made on notice was held sufficient to bring finality to the proceedings, and the Revenue's attempt to continue the matter failed.

Ratio Decidendi: Where the statute declares proceedings conclusive upon timely payment of duty, interest and the prescribed penalty after notice, further proceedings arising from the same cause cannot be sustained.

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