2007 (1) TMI 335

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....remanded for a fresh decision on the question of penalty. While making the remand, the Hon'ble High Court observed that the only contention raised for the revenue was that the penalty of Rs. 25,000/- was imposed by the Tribunal though the penalty specified under the statute provision of Section 11AC of the Central Excise Act, 1944 had been interpreted by the Hon'ble High Court of Punjab & Haryana to mean minimum penalty in Commissioner of Central Excise, Delhi v. Illpea Paramount Pvt. Ltd. reported in 2006 (204) E.L.T. 22 (P & H) = 2006 (4) S.T.R. 416 (P & H) = 2006 (77) RLT 18. 2. By the Order-in-Original, dt. 15-11-03, the Commissioner had confirmed the demand of Rs. 6,71,829/- under Section 11A by invoking the provisions of exten....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mount payable under the adjudication order, of Rs. 6,81,437/- on account of interest for delay in depositing the duty amount as well as the penalty of 25% of the amount confirmed as duty were deposited on 15-12-03 which was also within 30 days from the date of the communication of the order. 4. The learned Authorized Representative for the department on the other hand submitted that the proviso to Section 11AC contemplated the deposit being made after the determination of duty under Section 11A(2) and therefore the amount earlier paid during the pendency of the proceedings (Rs. 6,98,867) cannot be considered to be payment of duty as determined by the order which was made subsequently on 15-11-03. It was also submitted that minimum p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....6,98,867/- cannot be considered to be a deposit made within 30 days of the order of adjudication is misconceived for the simple reason that though the amount was earlier deposited when the adjudication order determining the duty was made, it was ordered to be adjusted and therefore, it should be treated as a payment made within 30 days from the date of the commencement of the order. As regards the rest of the amount payable under the impugned order, the communication dated 17-12-03 and the copy of the TR-6 challan disclose that the entire duty as determined and interest payable duty were paid within 30 days of the communication of the adjudication order. 6. In the context of the above facts, the first proviso to Section 11AC of the ....