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2016 (2) TMI 328 - AT - Central ExciseShortages found during the course of physical verification - demanding duty along with interest and imposing penalty - Held that:- As the learned Counsel for the appellant has conceded the liability of duty, therefore duty demand is confirmed. With regard to the interest, find that appellant has paid the duty within a month of investigation, no interest is payable by the appellant. Coming to the imposition of penalty on the appellant as gone through the panchnama and submissions recorded by the authorities below at the time of investigation by authorized signatories who admitted that they have cleared the short found goods without payment of duty clandestinely. In these circumstances, the allegation of suppressions under section 11AC of the Central Excise Act, 1944 stand proved. Thus as per the proviso to section 11 AC of the Act, penalty is to be paid 25% if the assessee pays the duty along with interest within 30 days of the adjudication. Admittedly, in this case, the appellant has paid the duty before adjudication and moreover within the same month of investigation and no interest was payable by the appellant. In these circumstances, as per the proviso of Section 11AC of the Act, penalty is reduced to 25% of duty in question. Therefore, appellant is directed to pay 25% of duty as penalty within 30 days of communication of this order failing which the appellant shall be liable to pay duty 100% as penalty.
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