2013 (1) TMI 74

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....pondent Rep by: Shri D.P. Naidu, SDR Per: Ashok Jindal: By the impugned order, a penalty of Rs.6,80,569/- has been imposed on the appellants under Section 11AC of the Central Excise Act, 1944. The facts of the case are that the appellants imported certain material and as they were not having Central Excise Registration but the same were cleared in local market by charging Central Excise duty....

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....s no provision in the Central Excise Act for levy of penalty on the demands confirmed under Section 11D of the Central Excise Act, 1944. Therefore, the order imposing penalty under Section 11AC is not sustainable. He also relied on the decision of M/s.Jino System India Pvt. Ltd. & Another vide Final Order No.1308-1309/11, dated 16.12.2011. On the other hand, the learned DR opposes the contention o....

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....tention of the learned consultant that there is no provision either in the Act or in the Rule for imposing of penalty, where demand has been paid under Section 11D of the Act. Therefore, penalty can be imposed only on the demand of Rs.69,281/-. Further, I find that the appellants have paid the entire amount of duty along with interest before adjudication. Therefore, penalty is restricted to 25% of....