2017 (11) TMI 233

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.... duty in accordance with the Rule 8 read with Rule 9 of Central Excise Valuation Rules 2010.  Although pointed out by the Audit department, the short payment was made good by the Appellant; coming to the conclusion that such short payment was noticed only by the department due to Audit,  a show cause notice was issued for demand of interest and also for imposition of penalty.  The adjudicating authority after following due process of law, confirmed demands raised with interest appropriated the amounts paid and imposed equivalent amount of penalty under the provisions of section 11 (a) (c) of the Central Excise Act, 1944.  Aggrieved by such an order, an appeal was preferred before the First Appellate Authority against the....

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....llant would know as to what is the correct value that needs to be applied for the discharge of excise liability.  Having accepted the fact that during the relevant question, there was under valuation, the claim of the Appellants that equivalent penalty imposed is not in consonance with the law by the Appellant 8.  I find that the First Appellant Authority has recorded a correct reasoning for upholding the penalty imposed which I reproduce and agree with: I find that even though short payment of duty was made good vide Sl. No.1 and 19 both dated 31.08.2009 in their Cenvat Account for capital goods and inputs respectively and interest amount of Rs. 4,02,172/- was also paid vide challan dated 17.09.2009, the fact remains that t....