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2012 (8) TMI 933 - HC - Central ExcisePenalty - Whether the Tribunal below committed substantial error of law in giving benefit of the reduced penalty by totally misconstruing the proviso to Section 11AC of the Central Excise Act, 1944? Held that: - As per the First Proviso of the section, if assessee pays duty and interest within 30 days from the date of communication of the order, the amount of penalty will be reduced to 25% of the duty determined and the assessee would have to pay penalty to the extent of 25% only. The Second Proviso says that the benefit of the First Proviso would be available provided that the reduced penalty is also paid within the period of 30 days referred to in that Proviso. The option to pay within 30 days under the Proviso concerned to section 11AC of the Act, if not given by the adjudicating authority, such option should be given to the assessee at the appellate stage and the period of 30 days would commence from the date of giving such option. No Substantial error of law is committed by the Tribunal in giving benefit of the reduced to the respondent-assessee under the Proviso to section 11AC of the Act. The benefit of payment of reduced penalty can be availed by the assessee at the appellate stages also - appeal dismissed - decided against Revenue.
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