AI Drafter 
TaxTMI 
TaxTMI 
2018 (9) TMI 567
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.... Dharmendra Textile Processors and Ors., reported in 2008 (13) SCALE 233 = 2008 (231) E.L.T. 3 (S.C.) to the facts of the present case?" 2. Evidently, on 10-2-1999 notice was issued to the appellant-assessee under Section 11AC of the Central Excise Act, 1944 in respect of assessment period from 1-4-1994 to 16-1-1997 to show cause as to why for the non-disclosure to the department that they are manufacturing Brake drums and Hubs fully machined and with other brand name with an intention to avail benefit of SSI exemption which otherwise would not have been admissible to them as with effect from 1-4-1997 vide Notification No. 59/94-C.E. SSI exemption was not available on the goods which have been manufactured with other person brand na....
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....ain cases. - Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reasons of fraud, collusion or any wilful misstatement 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, the person who is liable to pay duty as determined under sub-section (2) of Section 11A, shall also be liable to pay a penalty equal to the duty so determined : Provided that where such duty as determined under sub-section (2) of Section 11A, and the interest payable thereon under Section 11AB, is paid within thirty days from the date of communication of the order of the Central Excise Officer determining....
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....nt; (2) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.]" 5. True it is, as held in Commissioner of Central Excise, Coimbatore v. ELGI Equipments Ltd., (2001) 9 SCC 601 = 2001 (128) E.L.T. 52 (S.C.) and in Commissioner of C. Ex., Mumbai-I v. Lal Mininig Engg. Works, 2007 (215) E.L.T. 167 (S.C.) that Section 11AC of the Act being a penal provision providing for a mandatory penalty will be prospective in operation. 6. However, the question in the present case is that when the period of non-disclosure includes the period when Section 11AC of the A....
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....t considerations from a proceeding for penalty imposed for concealment of income. And this is so notwithstanding that the income concealed is the income assessed to tax. In the case of the assessment of income and the determination of the consequent tax liability, the relevant law is the law which rules during the assessment year in respect of which the total income is assessed and the tax liability determined. The rate of tax is determined by the relevant Finance Act. In the case of a penalty, however, we must remember that a penalty is imposed on account of the commission of a wrongful act, and plainly it is the law operating on the date on which the wrongful act is committed which determines the penalty. Where penalty is imposed for conc....
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....9. The imposition of penalty not confined to the first default but with reference to the continued default is obviously on the footing that non-compliance with the obligation of making a return is an infraction as long as the default continued. Without sanction of law no penalty is imposable with reference to the defaulting conduct. The position that penalty is imposable not only for the first default but as long as the default continues and such penalty is to be calculated as a prescribed rate on monthly basis is indicative of the legislative intention in unmistakable terms that as long as the assessee does not comply with the requirements of law he continues to be guilty of the infraction and exposes himself to the penalty provided b....