2025 (11) TMI 252

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....ined at the sales office of Silver Rose under Rule 25 of the Central Excise Rules, 2002 [Rules] and allowed their redemption on payment of a fine of Rs. 10,00,000/-. He also imposed a penalty of Rs. 5,00,000/- on Silver Rose under rule 25 and penalty of Rs. 2,00,000/- each on Shri Manoj and Shri Manish under rule 26. 2. We have heard learned counsel for the appellants and the learned authorized representative for the Revenue and perused the records. 3. Silver Rose was manufacturing various ladies bags, wallets, gents kits, etc. during the relevant period but it was not registered with the department or paid central excise duty. Acting on intelligence, the officers of central excise searched the factory and office of Silver Rose and the premises of its Directors Manoj and Manish on 1.10.2015 and detained the goods as indicated above along with various documents. A show cause notice dated 31.3.2016 [SCN] was issued to Silver Rose, Manoj and Manish proposing to confiscate the goods and impose penalties and these proposals were decided by the Assistant Commissioner in the OIO and upheld in the impugned order. 4. During the course of proceedings for demand of duty, Silver ....

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....se (a) is paid within thirty days of the date of communication of the order of the Central Excise Officer who has determined such duty, the amount of penalty liable to be paid by such person shall be twenty-five per cent of the penalty imposed, subject to the condition that such reduced penalty is also paid within the period so specified; (c) where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of fraud or 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 (10) of Section 11A shall also be liable to pay a penalty equal to the duty so determined: Provided that in respect of the cases where the details relating to such transactions are recorded in the specified record for the period beginning with the 8th April, 2011 up to the date on which the Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall be fifty per cent of the duty so determined; ....

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....hall be governed by the provisions of section 11AC as amended by the Finance Act, 2015; (ii) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where show cause notice has been issued but an order determining duty under sub-section (10) of section 11-A has not been passed before the date on which the Finance Bill, 2015 receives the assent of the President, shall be eligible to closure of proceedings on payment of duty and interest under the proviso to clause (a) of sub-section (1) or on payment of duty, interest and penalty under clause (d) of sub-section (1), subject to the condition that the payment of duty, interest and penalty, as the case may be, is made within thirty days from the date on which the Finance Bill, 2015 receives the assent of the President; (iii) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where an order determining duty under sub-section (10) of section 11-A is passed after the date on which the Finance Bill, 2015 receives the assent of the President shall be eligible to payment of reduced penalty under clause (b) or clause (e) of sub-section (1), subject to the condition that ....

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.... Provided that where any proceeding for the person liable to pay duty have been concluded under clause (a)or clause (d) of sub-section (1) of section 11AC of the Act in respect of duty, interest and penalty, all proceedings in respect of penalty against other persons, if any, in the said proceedings shall also be deemed to be concluded. (2) Any person, who issues - (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made thereunder like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater. 8. The case of the department is that the appellant had manufactured and removed excisable goods without paying duty. For this reason, some goods were detained during investigation and confiscated in the impugned adjudication order which are the subject matter of these ap....