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2015 (2) TMI 743 - HC - Central ExcisePenalty under Section 11AC - Removal of credit availed Inputs as such - Demand of duty under Section 11A(1), interest under Section 11AB - Held that:- As is evident from the facts of the case, here is a case of adjudication invoking the extended period proviso to Section 11A(1) of the Central Excise Act. In such circumstances, the decision of the Larger Bench of the Supreme Court in case of Dharamendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT] makes it very clear that penalty under Section 11AC is imposable. The above-said decision was followed by the Supreme Court in the case of Rajasthan Spinning and Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA], in which supreme court held that the decision in Dharamendra Textile must, therefore be understood to mean that though the application of Section 11AC would depend upon the existence or otherwise of the conditions expressly stated in the section, once the section is applicable in a case the concerned authority would have no discretion in quantifying the amount and penalty must be imposed equal to the duty determined under sub-section (2) of Section 11A. That is what Dharamendra Textile decides. In view of the categorical statement of law and taking note of the specific provision of Section 11AC of the Central Excise Act, we are of the view that the Tribunal is not justified in confirming the order of the Commissioner (Appeals), who reduced the penalty imposed under Section 11AC of the Central Excise Act. Such a mandate under the Statute cannot be given a go-by by the Tribunal. We therefore, answer the questions of law in favour of the Revenue.Decided in favour of appellant/revenue.
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