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2011 (7) TMI 598 - CESTAT, DELHIPlea for reduction of penalty under first proviso to Section 11AC - Clandestine removal of the goods without payment of duty - Held that:- Supreme Court in the case of Rajasthan Spinning & Weaving Mills Ltd. vs. CCE (2009 (5) T.M.I. 15 (SC)) has held that if the elements of Section 11AC are present, the penalty under this section would be attracted even if the duty had been paid prior to issue of show cause notice. In such situation, penalty u/s 11AC can be reduced when the entire duty confirmed by the adjudicating authority u/s 11A(2) along with interest payable thereon u/s 11AB together with a amount of equal to 25% of duty amount towards penalty is paid within a period of thirty days from the date of adjudication order. In present case, appellants have paid duty and 25% of the duty towards penalty within stipulated period, the interest on duty has not been paid by them, therefore, the statutory conditions for availing the benefit of first proviso to Section 11AC have not been fulfilled by the appellants - Decided against the assessee.
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