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2013 (6) TMI 87 - HC - Central ExcisePenalty - benefit of reduced penalty of 25% u/s 11AC - option to avail - held that:- in its adjudication order the adjudicating authority under the Act should explicitly state the options available to the Assessee under Section 11AC of the Act. Once the choices are made known to the Assessee and it still does not take advantage of the first proviso to Section 11AC of the Act, it will be entirely at its own peril. Therefore, it would be beneficial, both from the point of view of the Revenue as well as the Assessee, if the options available to the Assessee are mentioned in the adjudication order itself. It is seen that these proviso to section 11AC of the Act have been specifically inserted to ensure speedy recoveries of the disputed amount. It is an incentive given to the assessee that if he pays the duty amount along with interest, the penalty is reduced to 25% of the duty . This provision is beneficial to the department as well as the assessee as rightly pointed out by Delhi High Court in K.P. Pouches (P) Ltd. [2008 (1) TMI 296 - HIGH COURT OF DELHI]. and therefore, the assessee should be made aware of the option available to him. It will be open to the appellant assessee to deposit 25% of the penalty determined by the adjudicating authority within 30 days from today to avail benefit of reduced penalty under Second Proviso to Section 11AC of the Act. - decided in favor of assessee.
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