2009 (11) TMI 10

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....ted not voluntarily but on detection by the department." At the outset we may state that in CEA No.9 of 2006 titled Commissioner of Central Excise, Chandigarh vs. M/s.Him Chemicals & Fertilizers Ltd. the identical question of law was involved and we had decided the case in favour of the revenue. This Court on a conjoint reading of Section 11AC of the Act held that penalty can be imposed even if the excise duty is deposited at the threshold before the issuance of show cause notice. The facts of the present case are that the preventive staff of the Central Excise Commissionerate, Chandigarh visited the factory premises of the assessee on 11.9.2003.  It was found that raw material i.e. Caustic Soda lye was only weighing 28.392 MT wh....

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.... determined under sub-section(2) of section 11-A, 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 be twenty-five per cent 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 proviso: Provided also that wh....