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2015 (1) TMI 74 - AT - Central ExciseBenefit of proviso to section 11AC - Duty paid before issuance of SCN - Held that:- It is not disputed that the appellants had deposited an amount of ₹ 66 lakhs even prior to issuance of show cause notice. The said amount covers the entire duty amount confirmed against the appellant and interest as also penalty of 25% of duty amount. In terms of first proviso to Section 11AC, if the duty determined and interest is paid within 30 days from the date of communication of the order of the Central Excise officers determining such duty, the amount of penalty liable to be paid by such persons under this section shall be 25% of the duty so determined. Inasmuch as the appellant in the present case has deposited the duty prior to confirmation of the same in fact prior to issuance of show cause notice, the said deposits have to be held as satisfying the first proviso to Section 11AC in which case the penalty would get reduced to 25%. Though the appellant have relied upon various decisions of different High Courts in support of his contention, I feel no need to refer to same inasmuch the law itself provides reduction of penalty in the said scenario. Accordingly, penalty on M/s. Intex Technologies is being reduced to 25%. Demand confirmed against them along with interest is however upheld as not contested - No separate penalty to be imposed on the Managing Director of the company - Decided partly in favour of assesse.
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