2007 (8) TMI 205

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....the appellant. None present for the respondent, although they are served after admission of the appeal. 2. This appeal is admitted on following substantial question of law. "Whether the authorities under the Central Excise Act, 1944, have any discretion to levy less penalty or exempt penalty u/s 11-AC on the duty evaded? Whether payment of duty before issuance of show cause notice can be a g....

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....is paid within thirty days in which case the penalty under section 11-AC would be twenty-five per cent of the duty evaded. 3. We, therefore, answer the substantial question of law accordingly i.e. the authorities under the Central Excise Act, 1944 have no discretion to levy less penalty or exempt penalty under section 11-AC on the duty evaded, once the requirements of Section 11-AC are attracte....

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....s determined was one under section 32 of the Income Tax Act, 1961. The Declaration in such circumstances must be said to be a mis-statement aimed at evasion of the duty and penalty was, therefore, imposable. Unfortunately, none of the three adjudicating authorities so far have discussed this angle and hence, in order to ascertain that requirement of Section 11-AC is fulfilled, we have considered c....