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2011 (5) TMI 232 - CESTAT, NEW DELHIPenalty only under Rule 25 - Reduced penalty in 1st and 2nd proviso to section 11AC are applicable or not - The Commissioner (Appeals) in his order cannot go beyond the scope of the show cause notice and impose penalty under section 11AC - Just because the Commissioner (Appeals) refers to section 11AC also, the penalty imposed by the original adjudication authority does not become penalty under section 11AC - It is settled law, that show cause notice is the foundation of a case and the original adjudicating authority or the Appellate authority cannot travel beyond the show cause - the department cannot plead that the penalty imposed was u/s 11AC and its reduction is only subject to the condition prescribed in 1st and 2nd proviso of section 11AC - Since the penalty had been imposed under Rule 25 of Central Excise Rules where the quantum is discretionary, there is no informity in the impugned order reducing the penalty and as such the conditions for reduced penalty in 1st and 2nd proviso to section 11AC are not applicable to this case - The revenue s appeal is dismissed.
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