TaxTMI 
TaxTMI 
2021 (12) TMI 954
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....2,25,479/- has been confirmed with interest. Since the appellant had paid Rs. 2.35 Crores during investigation and amount of 62,25,479/- and interest thereon was appropriated to the Government account towards confirmed demand and also penalty of Rs. 62,25,479/- has been imposed. Since the appellant had already paid more than the duty and the interest to be deposited above and option to pay reduced penalty of 15,56,370/- @ of 25% of 62,25,479/- was given to the appellant vide OIO and penalty of Rs. 5000 under Rule 27 of Central Excise Rules, 2002 has been imposed. Thereafter, the appellant filed a refund claim of the differential amount already deposited by them vide their letter dated 18.05.2017. The said refund claim was processed and sanc....
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....hoose the option of paying less penalty within the time limit of 30 days as mandatory in section 11AC (1) (e) nor intimated the department to deduct the reduced penalty within 30days on receipt of the above said OIO. The appellant only opted to pay the reduced penalty of 25% of 62,25,479/- after lapse of 30 days therefore, the sanctioning authority erred in not following the basic criteria for availing the benefit of reduced penalty under section 11AC (1) (e) of Central Excise Act, 1944 and allowed the appellant to pay the reduced penalty at the rate of 25% even after the lapse of 90 days against the mandated 30 days. The learned Commissioner (Appeals) accepting the aforesaid grounds of appeal allows the revenue's appeal. Therefore, the pre....
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....ty. The department's contention is that since the appellant have not opted for reduced penalty in writing therefore, 100% penalty will remain payable and accordingly the refund was supposed to be reduced by the amount of 100% penalty instead of 25% penalty. I find that the Adjudicating authority while sanctioning the refund even though the appellant informed not to deduct the penalty as they are contesting the matter before the appellate authority, sanction the refund from the amount after deducting the confirmed duty, interest and 25% penalty. The amount deducted by the Assistant Commissioner was deposited and retained by the department right from the day it was deposited till the refund was sanctioned. Therefore, at the time of passin....