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2014 (5) TMI 1039 - PUNJAB AND HARYANA HIGH COURTPenalty u/s 11AC - Whether imposition of 100% penalty is justifiable when the duty as well as interest along with 25% of the duty has been deposited prior to the passing of the Order-in-Original dated July 20, 2009 by the adjudicating authority and/or denial of benefit provided under Section 11AC of the Act is wrong and contrary to law - Held that:- Divisional Preventive Staff conducted an inspection of the appellant-firm on July 30, 2008 during which, 20.100 MT quantity of Silicon Manganese involving Cenvat credit of ₹ 2,14,483/- was found deficit. The said fact was admitted by Darbara Singh, one of the partners of appellant-firm but he could not furnish any plausible explanation for the shortage. Accordingly, the respondent-Revenue issued a show cause notice dated January 30, 2009 which was duly replied. At the time of filing of reply to the show cause notice on February 10, 2009, the amount of duty and interest payable thereon along with 25% penalty was deposited much prior to the passing of the impugned order dated July 20, 2009 imposing penalty, of ₹ 2,14,483/- which is equal to the amount of duty of excise determined by the adjudicating authority. - whereas authority relied upon by learned Counsel for respondent-Revenue captioned as Dharamendra Textile Processor’s case (2008 (9) TMI 52 - SUPREME COURT) is not applicable to the facts of the case in hand. Even otherwise, learned Counsel for the respondent-Revenue has also failed to show any judgment taking a contrary view - Decided in favour of assessee.
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