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2014 (11) TMI 244 - AT - Central ExcisePenalty u/s 11AC - option of avail benefit of reduced penalty of 25% - Clearance of goods without payment of duty – duty paid before SCN issued - Held that:- While the duty demand confirmed against the appellant is ₹ 2,71,144/-, earlier in the first round of litigation, in pursuance of the Tribunal’s stay order dated 13/07/2000, they had deposited an amount of ₹ 6,00,000/- under TR-6 challan No. 30 dated 02/09/2000 and it is not disputed that this amount is still with the Department. The denovo adjudication order was passed on 31/12/2000. Thus, even before the adjudication, the entire amount of duty and interest had been paid by the appellant. The denovo adjudication order, in spite of the proviso to Section 11AC, did not give an option to the appellant to avail of the benefit of lower penalty by paying 25% of the penalty within period of 30 days of the adjudication order. In view of these facts, in our view, the judgment of Hon’ble Delhi High Court in the case of K.P. Pouches (P) Ltd. vs. Union of India (2008 (1) TMI 296 - HIGH COURT OF DELHI) would be applicable and therefore the benefit of lower penalty in terms to proviso to Section 11AC cannot be denied. The penalty on the appellant under Section 11AC is accordingly reduced to 25% - Decided partly in favour of assesee.
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