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2013 (7) TMI 368 - AT - Central ExciseReduced payment of penalty u/s 11AC @ 25% - Duty demand was confirmed by the original adjudicating authority along with interest thereon - quantum of interest has not been specified in the said order – Held that:- Only part payment of duty made and have not made the full amount of duty confirmed, the question of quantifying the interest amount does not arise since the date of payment of duty is not known. Interest is a consequential liability and has to be discharged, whenever there is a default in payment of duty by the due date and, therefore, it cannot be said that in all cases of duty demand, the department should specify the interest amount also, especially when the date of payment of duty on a subsequent period is not known - Therefore, the contention that the interest amount should be computed and should be communicated and, thereafter Assessee will discharge the same within a period of 30 days from the date of such communication and the benefit of reduced penalty of 25% penalty be allowed has no merit - Hon'ble apex Court in the case of Rajasthan Spinning & Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] held that mandatory penalty under Section 11AC is a punishment for an act of deliberate deception, therefore, the said penalty cannot be reduced subsequently by an appellant authority. Decided against the Assessee.
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