TaxTMI 
TaxTMI 
Question - What are amendment proposed in Section 11AC of Central Excise Act ,1944 in Finance Bill 2015 ?
Amendment in Section 11AC
28 Feb 2015 
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Penalty restructuring in excise law: revised tiers for non-fraud and fraud cases with payment-triggered reductions.
The amendment replaces Section 11AC to create two penalty regimes: for non-culpable cases a penalty up to ten percent of the determined duty applies, with waiver if duty and interest are paid before or within thirty days of show cause notice and a reduced penalty of twenty-five percent of the imposed penalty where paid within thirty days of the officer's order; appellate reductions adjust the penalty. For culpable cases a penalty equal to the determined duty applies (halved for transactions recorded in a specified register for a stated historical period), with payment-triggered reductions and similar appellate modification and timely-payment conditions. (AI Summary)
The amendment replaces Section 11AC to create two penalty regimes: for non-culpable cases a penalty up to ten percent of the determined duty applies, with waiver if duty and interest are paid before or within thirty days of show cause notice and a reduced penalty of twenty-five percent of the imposed penalty where paid within thirty days of the officer's order; appellate reductions adjust the penalty. For culpable cases a penalty equal to the determined duty applies (halved for transactions recorded in a specified register for a stated historical period), with payment-triggered reductions and similar appellate modification and timely-payment conditions. (AI Summary)