2011 (1) TMI 281

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....nt against the order of the Commissioner (Appeals) No.194-195/CE/LKO/08 dt.26.11.2008. The cross objection No.E/90/09-SM is connected to this appeal which is basically in support of the order of the Commissioner (Appeals).   2. Heard both sides.   3. The department is in appeal on the ground that the Commissioner (Appeals) has reduced the penalty from Rs.1,12,246/- to Rs.25,000/- after....

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....yment of SAD, he submits that the penalty imposed by the original authority amounting to Rs.92,285/- should have been sustained in the light of the provision of Rule 15 (2) of Cenvat Credit Rules, 2004 read with Section 11AC.   5. Learned Advocate strongly supports the order of the Commissioner (Appeals). He also draws my attention to the decision of the Hon ble High Court of Delhi in the ca....

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....7. I have carefully considered the submissions from both sides and perused the records, As regards penalty of Rs.19,961/-, it is a clear case of admitted clandestine removal followed by payment of duty involved and therefore the provisions of Section 11AC are clearly attracted. However, as duty stands paid before issue of show cause notice, an option should have been extended to the assessee to pa....