TaxTMI 
TaxTMI 
2026 (5) TMI 527
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....ts were confirmed and already paid was also appropriated along with penalty under Section 112(ii) of Customs Act 1962 and under Rule 25(b) of Central Excise Rules 2002 (impugned order). The Adjudicating Authority also gave an option to the respondent under proviso to Section 114A of Customs Act 1962 and Section 11AC(c) to pay 25% of the amounts of duty so confirmed towards penalty, apart from the applicable interest within 30 days from the date of communication of this order. 2. The case of the Department is that the Adjudicating Authority has wrongly allowed the option to pay reduced penalty of 25% of the amount in terms of Section 114A of Customs Act and Section 11AC(c) of Central Excise Act as the penalty was imposed under Section 112....
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....r and therefore they are entitled to file cross objections and the same is to be treated as an appeal in terms of Section 129(4) of the Customs Act 1962. 8. Heard Learned AR and perused documents on record. 9. The brief facts of the case are that the respondents are 100% EOU and certain demands were made due to non-meeting of Net Foreign Exchange Earning (NFEE). A show cause notice dated 31.05.2012 was issued to the respondent and the Commissioner passed an order dated 31.12.2012 confirming demand in terms of B-17 bond and conditions of the relevant notification under which the goods have been procured without payment of duty. The respondent went to Tribunal against the said order and the Tribunal remanded back to the Commissioner to ....
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....e interest has been levied under Section 28AB. Essentially, therefore, the provisions that the demand of short levy, non-levy is to made in terms of Section 28 and the interest will also be applicable under Section 28AA or for that matter under Section 28AB, as it existed during material time. Similar provisions, under Central Excise Act also exist where Section 11AC(c) provides for similar payment of 25% of the duty as penalty. 11. We find that the show cause notice has been issued proposing as to why the custom duty on imported raw material should not be paid under Section 28 of Customs Act 1962 read with condition of Notification No. 52/03-Cus dated 31.03.2003, as amended and also Central Excise duty should not be paid by them under S....
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....rted and domestic goods were allowed. There is no denial that conditions were fully met. The reliance was placed by respondent on certain case laws, however, the Adjudicating Authority has not entertained similar view as held in those cited cases and relied on certain judgments namely M/s Mysore Minerals Ltd., Vs CCE, Mysore [2013 (293) ELT 108 (Tri-Bang)], wherein, it was held that provisions under Section 111(o) specifically covers a situation where any goods exempted subject to any condition from duty or provision and the said conditions are not observed unless the non-observance of the condition is sanctioned by the proper Officer. While the respondent is canvassing that they have already paid the duty and penalty and therefore the non-....