2009 (7) TMI 346

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....- The present appeal is being decided in terms of Hon'ble Gujarat High Court judgment vide which the matter stands remanded for fresh consideration. 2. The Original Adjudicating Authority vide his order dated 23-2-2007 confirmed the demand of duty of Rs. 57,936/- under Section 11AC of Central Excise Act. By taking note of the fact that the said duty was deposited before issuance of show cause not....

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....as determined under the provisions of Section 11A(2) along with interest chargeable under Section 11AB of the Act within 30 days from the date of communication of the order determining such duty, the amount of penalty liable to be paid by such person under this Section shall be 25% of the duty so determined and such benefit of reduced penalty is available only if such reduced penalty is also paid ....

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....25% imposed by the Assistant Commissioner was justified. The said order stands set aside by the Hon'ble Gujarat High Court with directions to decide the issue of penalty afresh in the light of Apex Court judgment in the case of UOI v. Dharamendra Textile Processors - 2008 (231) E.L.T. 3 (S.C.). 5. After hearing both the sides duly represented by Shri Hardik Modh, ld. Advocate and Shri R.S. Srova,....

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.... of the penalty imposed by Original Adjudicating Authority within a period of 30 days from the communication of the order. As held by the Hon'ble P & H High Court in the case of CCE, Rohtak v. J.R. Fabrics Limited - 2009 (238) E.L.T. 209 (P&H), the option to pay 25% of the duty is required to be given by the adjudicating authority in terms of the first proviso to Section 11AC. If no such option wa....