2016 (10) TMI 277

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....ishnan, Mr. Rupesh Kumar, Ms. Aruna Gupta, Mr. H. K. Naik, Mr. B. Krishna Prasad Advocates for the Appellants. Mr. Alok Yadav, Mr. Somnath Shukla, Mr. Udit Jain, Mr. Praveen Kumar, Advocates for the Respondents. ORDER In the instant matter, special leave to appeal was granted limited to the question of penalty. 2. In this behalf, we may point out that in the Show Cause Notice issued by....

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...., learned senior counsel appearing for the appellant, is that in terms of Section 11AC of the Central Excise Act (hereinafter referred to as 'Act'), the penalty has to be equal to the duty so determined. 5. Section 11AC of the Act reads as under:- "11AC. Penalty for short-levy or non-levy of duty in certain cases - Where any duty of excise has not been levied or paid or has bee....

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....Mr. Radhakrishnan is meritorious. Thus, while the penalty as demanded in respect of one Show Cause Notice had been quashed, the Tribunal could not reduce it for an amount lesser than the duty which has been upheld. The duty in respect of two demands comes to Rs. 40,44,720/-. Therefore, going by the provisions of Section 11AC of the Act, the penalty should also have been Rs. 40,44,720/- and not Rs.....