TaxTMI 
TaxTMI 
2022 (10) TMI 920
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.... and October, 2008. The appellant on being pointed out by the audit, deposited the amount of duty along with interest. A show cause notice was issued on 16.01.2009, the show cause notice was adjudicated wherein, demand of short payment of duty was confirmed and the same along with payment of interest has been appropriated. Apart from duty and interest, a demand of equal penalty under Section 11AC was imposed. The appellant before the adjudicating authority as well as the Commissioner (Appeals) agitated only in respect of imposition of penalty under Section 11AC. Both the authorities have held that appellant are liable for penalty of equal amount under Section 11AC and therefore, the present appeal filed by the appellant. 02. Shri Amal Dave....
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....d the duty while debonding from EOU on the stock as on 03.01.2008. There was subsequent receipt of the goods and the same was neither informed to the department nor paid the duty thereon suo moto. It is only on pointing out by the audit party they have paid the duty. The appellant were very well aware that the short payment was supposed to be paid at the time of debonding of the unit but they suppressed this fact till the audit has pointed out therefore, the penalty under Section 11AC was rightly invoked and imposed by both the lower authorities. 04. I have carefully considered the submissions made by both the sides and perused the records. I find that there is no dispute about the duty and interest which were already paid by the appellant....
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....e ones which were already available before the Customs authorities at the time of computation of duty amount. The duty which is the subject matter of this show cause notice is in respect of finished goods which came into existence and attained liability to duty of Central Excise after the date of computation by the jurisdictional Customs and Central Excise authorities. The assessee having already undergone the process of assessment of duty, in respect of finished goods lying on the date of such computation by the relevant authorities, they ought to have realised that this is the finished goods that came into being after such date would be similarly leviable, to duty on the same criterion. As against this, however, the assessee seems to have....
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....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 such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five percent of the duty so determined: Provided further that the benefit of reduced penalty under the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty days referred to in that provis....
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....if any duty is paid within one year from the due date or the show cause notice issued covers normal period of one year, the ingredients for imposing penalty under Section 11AC is only that if the duty was not paid by reason of fraud or collusion or willful mis-statement or suppression of fact or in contravention of any of the provision of this act or rules made therein with intent to evade payment of duty. Now, in the present case whether any of these ingredients exists in the facts of the present case needs to be examined. I find that the appellant was very conscious while debonding of the unit and duty so payable on the stock of the goods as on 03.01.2008 was calculated and paid the duty on that basis. The departmental officers have issue....