2014 (12) TMI 1124

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....thority confirmed a duty demand of Rs. 1,77,55,000/- against the appellant M/s. SND Iron Pvt. Ltd. along with interest thereon and also imposed equivalent amount of penalty on the appellant firm under Section 11AC of the Central Excise Act, 1944 and apart from penalty of Rs. 5,000/- under Rule 27 of the Central Excise Rules, and a penalty of Rs. 15 lakhs each on both the Directors of the appellant firm Shri Abhay Kumar Goyal and Shri Charanjit Paul Jindal. Aggrieved of the same, the appellants are before us. 2. Briefly stated, the facts of the case are as follows : - The appellant failed to discharge excise duty liability for the months of June, 2010 and October, 2010 to April, 2011. These short payments in duty were made good by....

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....ted the duty short paid along with interest thereon. Inasmuch as the duty liability along with interest has been discharged prior to issue of show cause notice, imposition of penalty on the appellant firm and on the two Directors is not warranted and, therefore, it is prayed that the impugned order imposing penalties on the appellants be stayed. 4. The learned Commissioner (AR) appearing for the Revenue, on the other hand, contends that the appellant knowing fully well that they had short paid the duty, did not declare this fact to the department. On the other hand, they tried to mis-lead the department by declaring in the ER-1 Returns that they had discharged the duty liability by giving details of fictitious duty paying challan. T....