Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2015 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 825 - HC - Central ExciseMandatory penalty - Whether the Tribunal can override the statutory provisions enshrined in the law in as much as the second proviso to Section 11AC of Central Excise Act, 1944, has been ignored in reducing the penalty wherein specific provisions are enlisted that the benefit of reduced penalty shall be available only when penalty is paid within 30 days of the date of communication of the Order which is not the case in the present matter - Held that:- The central excise duty is payable on the manufacture of excisable goods. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice - The judgment was rendered on equity, which is not applicable to the laws relating to central excise. The observation that since duty was deposited prior to the show cause notice, penalty could not be levied, is contrary to the principles settled in the central excise laws. - The judgment was rendered on equity, which is not applicable to the laws relating to central excise. The observation that since duty was deposited prior to the show cause notice, penalty could not be levied, is contrary to the principles settled in the central excise laws. - Decided in favour of Revenue.
|