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2018 (7) TMI 2333 - HC - Central ExciseNon-quantification of interest and not giving option as per first proviso to Section 11AC (unamended) of the Central Excise Act, 1944 - failure to comply with the circular dated 22.5.2008 issued by the Central Board of Excise & Customs - HELD THAT:- It is quite vivid that the adjudicating authority while passing the order neither quantified the interest payable under proviso to Section 11B nor gave option to the petitioner to pay the reduced penalty in terms of first proviso to Section 11AC of the Act of 1944, which is in breach of the circular of the Central Board of Excise & Customs and contrary to the judgment rendered by the Delhi High Court in K.P. Pouches (P) Ltd. [2008 (1) TMI 296 - DELHI HIGH COURT]. In fact, the adjudicating authority ought to have quantified the statutory interest payable by the petitioner and further given option to the petitioner in the original order as mandatorily required by the judgment of the Delhi High Court in K.P. Pouches (P) Ltd. and later explained by the Central Board of Excise & Customs. Thus, the order passed by the adjudicating authority non-quantifying statutory interest payable to the petitioner and not giving option to pay reduced penalty is held to be bad. The matter is remitted to the adjudicating authority who shall quantify the interest payable under Section 11B of the Act of 1944 by the petitioner and shall also give option to the petitioner to reduce penalty in terms of proviso to Section 11AC of the Act of 1944 - petition allowed.
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