2012 (11) TMI 1005

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....04 confirmed the duty demand of Rs. 3,17,089/- against the respondent along with interest and besides this also, imposed penalty of equal amount on them. On appeal being filed by the respondent company before the Commissioner (Appeals), the Commissioner (Appeals) confirmed the duty demand. He, however, reduced the penalty amount by Rs. 51,817/- taking note of the fact that this amount of excise duty had been deposited by the appellant even before the issue of show cause notice. Against this order of the Commissioner (Appeals), this appeal is filed by the Revenue. 2. Heard both the sides. 3. Shri R.K. Verma, DR assailed the impugned order pleading that just because of a part of the duty has been deposited before the issue of show cause....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aid appeal was dismissed by the CESTAT. It is not the case of the respondent that even after dismissal of the appeal by the CESTAT, the respondent has deposited the entire amount of duty confirmed against them with interest within 30 days of the receipt of the copy of that order by the respondent. That being the case, in our considered view, the respondent by no stretch of imagination can take advantage of 1st and 2nd [proviso] of Section 11AC of the Central Excise Act, 1944. Section 11AC of the Central Excise Act, 1944 is reproduced thus :- "11AC. PENALTY FOR SHORT-LEVY OR NON-LEVY OF DUTY IN CERTAIN CASES. [11AC. Penalty for short-levy or non-levy of duty in certain cases. -Where any duty of excise has not been levied or p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ay be, the Court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of duty so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of penalty have also been paid within thirty days of the communication of the order by which such increase in the duty takes effect. Explanation.- For the removal of doubts, it is hereby declared that - (1) the provisions of this section shall also apply to cases in which the order determining the duty under sub-section (2) of section 11A relates to notices issued prior to the date on which the Finance Act, 2000 receives the assent of the President; (2) any amount paid to the credit of the Central Government prior t....