2016 (9) TMI 180

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....ate for respondent ORDER Per M. V. Ravindran This appeal is filed by Revenue against Order-in-Appeal No. SVS/32/NGP-II/2005 dated 31.01.2005. The respondent is also filed a Cross Objection which is also disposed of by this order. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding the penalty imposed by the adjudicating authority on the respondent whic....

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....e Rules, 2001. The adjudicating authority confirmed the demand and imposed penalties under Rule 25 of the Central Excise (No.2) Rules, 2001 read with Section 11AC of the Central Excise Act, 1944. On an appeal, the first appellate authority set aside the said imposition of penalty on the ground that the Larger Bench decision of this Tribunal in the case of Machino Montell (I) Ltd.  2004 (96) E....

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....id before the issuance of show-cause notice but after offence detected by the department, leniency is not called for. 5. Learned Counsel would submit that the show-cause notice issued on 27.10.2003 and is not invoking the extended period for imposition of penalty under erstwhile Rules 173Q read with Section 11AC of the Central Excise Act, 1944. He would submit that the issue is covered under Sect....

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....ity that such belated payment was with intention to evade the Central Excise duty though there is a finding that the respondent deliberately taken credit without depositing the amount in the Bank. The finding of the adjudicating authority seems to be at variance of the fact that the credit was raised by the respondent in PLA on the presentation of the cheque to the bank authorities. The claim of t....