TaxTMI 
TaxTMI 
2013 (8) TMI 535
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....ce/Adj./FZD/139/2009/216-18 was issued to the respondents duty demanding amounting to Rs.52,493/- under proviso to Section 11A (1) of the Central Excise, Act, 1944 along with interest under Section (11AB). It was also proposed to impose penalty under rule 25 Central Excise Rules, 2002 and Section 11 AC of the Central Excise Act 1944. 3. Above show cause notice was issued when the officers of the anti-evasion wing of Central Excise Act Allahabad visited the factory and calculated the total stock of M/s ingots, it was found to 4.596 M.T. A shortage of 32.174 M.T. was detected. Since respondent failed to explain the reason for said shortage, it was concluded by the revenue that short found material has been cleared surreptitiously with inte....
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.... department has come in appeal before the Tribunal alleging that since there was suppression of facts, respondents were debarred of amnesty in terms of sub-section 2B of Section 11A (1). Accordingly requested that order passed by Commissioner (Appeal) be modified. 7. Heard both sides main issue involved for consideration is whether Commissioner (Appeal) is right in restricting the penalty equal to 25% of the duty within 30 days from the issuance of the Show Cause Notice. Whether he has erred in not demanding the interest. Reference is invited to Section 11A (1), Section 11AC which reads as under: Section 11A(1) in The Central Excises And Salt Act, 1944 (1) When any duty of excise has not been levied or paid or has been short- levie....
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....r contravention of any of the provisions of this Act or of the rules made there under with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (10) of section 11A shall also be liable to pay a penalty equal to the duty so determined; (b) where details of any transaction available in the specified records, reveal that any duty of excise has not been levied or paid or short-levied or short-paid or erroneously refunded as referred to in sub-section (5) of section 11A, the person who is liable to pay duty as determined under sub-section (10) of section 11A shall also be liable to pay a penalty equal to fifty per cent of the duty so determined; (c) where any duty as determined under sub-sec....
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....th interest and 25% of duty amount as penalty within 30 days of the receipt of the Show Cause notice thereby dispensing with the rigours of adjudication procedure. This is an additional facility given to the trade to settle the dispute at an early stage to reduce litigation and also aid on collection of tax dues more expeditiously. The scheme is optional and not compulsory. The assessee has to further option of using the proposed facility in full or in part in case of part payment; the remaining amount will be subject to regular proceedings as per the law. 9. The present case is of shortage of M.S. Ingots and M.S. Bars. In the instant case the shortage could only be detected on physical verification by the Departmental Officers when ask....
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....ntion to evade the payment of duty thereby attracting the proviso to Section 11 A (1) of the Central Excise Act, 1944. In the case of Nabha Steels Limited versus Commissioner Central Excise, Chandigarh [ 2004 (169) E.L.T. 345 (Tri.-Del.) shortage of Ingots was found on physical verification and admitted by the Director and the duty involved was debited. Penalty was imposed. In the face of the confessional statement of the Director, the appeal of Revenue was upheld by the Honourable Tribunal. Facts are almost similar in this case. 10. In view of above, it is very velar that it is case of clandestine removal where duty has been paid voluntarily and even 25% penalty has been also been paid which is correct as per legal provisions and Board....