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2015 (1) TMI 76 - HC - Central ExcisePenalty u/s 11AC - Whether an option of paying 25% of penalty imposed on the appellant under Section 11AC of the Central Excise Act was required to be extended to the appellant and whether the orders of the tribunal declining to extend such option are sustainable in the facts and circumstances of this case - Held that:- Provision of reduced penalty aims at reduction in the litigation and ensures that an assessee who accepts the duty demand and pays the same with interest within stipulated time would be granted such a benefit of reduced penalty. However, this Court has taken the view in the past, considering the departmental circulars issued from time to time, that such option should be offered. - Assessee would have an option to pay up the entire duty with interest within 30 days, upon which he would avail the benefit of duty, interest and reduced 1/4th penalty. The question is answered accordingly. Judgment of the tribunal is reversed to that extent. If the appellant deposits before the department unconditionally the entire amount of unpaid duty with interest and 1/4th penalty, the penalty under Section 11 AC of the Central Excise Act shall be reduced to such extent - Decided partly in favour of assesse.
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