2015 (9) TMI 825

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.... Excise Act, 1944 (for short, 'the Act'), filed by the Commissioner of Central Excise, Jaipur, was admitted on the following substantial question of law:- "Whether the Tribunal can override the statutory provisions enshrined in the law in as much as the second proviso to Section 11AC of Central Excise Act, 1944, has been ignored in reducing the penalty wherein specific provisions are enlisted that the benefit of reduced penalty shall be available only when penalty is paid within 30 days of the date of communication of the Order which is not the case in the present matter?" 3. It is submitted by learned counsel appearing for the Central Excise Department that in the present case, the assessee is engaged in manufacturing of PVC Lea....

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....hat the Act provides for penalty of 25%, if duty demanded, is paid within 30 days of the order, and accordingly reduced the penalty to Rs. 47,643/-, i.e. 25% of the duty amount. 5. Learned counsel appearing for the Central Excise Department, submits that the Tribunal has committed a gross error of law, inasmuch as the reduction of the amount of duty to 25% under the first Proviso to Section 11AC of the Act is on payment of penalty, liable to be paid by such person, within 30 days from the date of communication of the order of the Central Excise Officer, determining the duty. The unamended provisions of Section 11AC of the Act, which were subsequently amended by the Act No.10 of 2000, were clear that the reduction of duty to 25% is availabl....

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....oneously refunded by reason of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty." 6. The central excise duty is payable on the manufacture of excisable goods. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice. 7. The reliance placed by learned counsel appearing for the assessee on Rashtriya Ispat Nigam Ltd. Vs. CCE, Visakhapatnam, 2003(54) RLT 317 (CEGAT-Bangalore), and CCE, ....