TMI Blog2009 (1) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of reduction in amount of penalty is not available – equal penalty of demand is payable. - E/792/2006 - 44/2009 - Dated:- 7-1-2009 - Shri P. Karthikeyan, Member (T) Shri R.P. Meena, SDR, for the Appellant. Shri M.N. Bharathi, Advocate, for the Respondent. [Order]. - M/s. Ponneri Steel Industries, Tiruvallur, was found to have cleared excisable goods evading payment of duty due of Rs. 66,506/- during July, 2002. Vide Order-in-Original dated 30-12-2005, the original authority demanded the duty due of Rs. 66,506/- under Section 11A of the Central Excise Act, 1944 (the Act), imposed equal amount of penalty under Section 11AC, imposed a penalty of Rs.10,000/- under Rule 25 of Central Excise Rules, 2002 (CER) and demanded appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, the person found liable to pay duty determined under sub-section (2) of Section 11A was liable to pay a penalty equal to the duty determined. No authority under the Act had discretion to levy a lower amount of penalty. Other prayers in the appeal are not canvassed. 3. The learned counsel representing the respondents relies on a judgment of the Hon'ble Delhi High Court in K.P. Pouches (P) Ltd. v. Union of India reported in 2008 (228) E.L.T. 31 (Del.) in support of the plea that having paid most of the duty due on their own ascertainment before issue of the Show Cause Notice, the respondents were entitled to the benefit of paying 25% duty due as penalty in terms of the first proviso to Section 11AC of the Act. 4. I have caref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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." In order to qualify for the above benefit the assessee should have paid the duty due and the interest payable thereon under Section 11AB within 30 days of the communication of the order of the Central Excise officer determining such duty. In the instant case, the respondents paid part of the duty determined in the order of the original authority and the applicable interest after the impugned order was passed. Obviously, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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