TMI Blog2009 (4) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provisions of Notification issued under Section 11AB of Central Excise Act, 1944. The proposal of recovery of penalty from the appellant is set aside - E/934/2008 - A/805/2009-WZB/AHD - Dated:- 9-4-2009 - Shri B.S.V. Murthy, Member (T) REPRESENTED BY : Shri K.I. Vyas, Advocate, for the Appellant. Ms. M.I.J. Micheal, Jt. CDR, for the Respondent. [Order]. - M/s. Prince Paper Mills failed to pay Central Excise duty of Rs. 6,85,834/- on or before 20-11-2004 on clearances made during the first fortnight of November 2000 and Central Excise duty amounting to Rs. 4,62,033/- in respect of second fortnight of November 2000 and appellants failed to pay total amount of Rs. 10,93,807/- as required under the Rules. The total outstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the auction and emerged successful. Further, he also submitted that as per the decision of the Hon'ble Supreme Court in the case of Macson Marbles Pvt. Ltd. [2003 (158) E.L.T. 424 (S.C.)], the appellant are not liable to pay the penalty imposed on the Prince Paper Mills as they could not participate in adjudicating proceedings. As regards interest liability, he submits that the calculation has been made on the basis of Notification issued under Rule 8(3), whereas according the decision of the Tribunal in the case of Elastolan Engineers Pvt. Ltd. [2007 (216) E.L.T. 297 (Tri.-Kolkata)], rate of interest is to be as per the Notification under Section 11AB of Central Excise, 1944. Ld. JCDR on behalf of the Revenue submits that having given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is a need to re-calculate the interest amount as per law and as per the decision of the Tribunal in the case cited above. As regards penalty, Hon'ble Supreme Court in Para 8 of the judgment in Macson observed that penalty cannot be recovered from the successor since successor did not get an opportunity to contest the same. Relevant Para 8 is reproduced as under :- "8. The Department having initiated the proceedings under Section 11A of this Act adjudicated liability of respondent No. 4 and held that respondent No. 4 is also liable to pay penalty in a sum of Rs. 3 Lakhs while the Excise dues liable would be in the order of a lakh or so. It is difficult to conceive that the appellant had any opportunity to participate in the adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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