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2015 (5) TMI 372 - HC - Central ExcisePenalty u/s 11AC - whether the assessee is liable to pay interest and penalty in respect of the duty paid prior to the issue of a show cause notice to payment made after the due date - Held that:- though the application of Section 11AC of the Act 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 of penalty. It must be imposed equal to the duty determined under Sub-Section (2) of Section 11 of the Act. Therefore, imposition of penalty is not automatic. Only if the conditions prescribed in Section 11AC of the Act is fulfilled, then there is no discretion left with the authority except imposing penalty. - portion of the order setting-aside the imposition of penalty is hereby set-aside. The matter is remitted back to the original authority to consider the leviability of penalty in the light of the statutory provisions contained under Section 11AC of the Act and the interpretation by the Apex Court in the [2009 (5) TMI 15 - SUPREME COURT OF INDIA] and [2008 (9) TMI 52 - SUPREME COURT] in accordance with law. - Matter remanded back - Decided in favour of Revenue.
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