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2010 (10) TMI 1027 - HC - Central ExciseInterpretation of statute - Jurisdiction - Whether the Tribunal has the power to reduce mandatory penalty u/s 11AC of the CEA, 1944?? - Held that: - issue is no more res integra in view of the judgments of the Apex Court in the case of Union of India v. Dharmendra Textile Processors, [2008 (9) TMI 52 - SUPREME COURT]. In the said judgments the Hon'ble Supreme Court has held that while interpreting the provisions of law the Court only interprets and cannot legislate and further that where wordings of the Statute are unambiguous and do not lead to absurd and unreasonable results, they have to be given their full effect, without adding any foreign words to the same - question is answered in the negative i.e. in favour of the Revenue and against the Assessee holding that the Tribunal on its own cannot reduce mandatory penalty under section 11AC of the Act for want of power in that behalf. Whether the respondents are entitled to the benefit of first and second provisos to section 11AC of the CEA, 1944? - Held that: - in order to avail the benefit of 25% penalty, the duty, interest and penalty are required to be paid within 30 days of communication of the order passed by the adjudicating authority. Further, the reading of proviso (4) would also support this interpretation because the said proviso stipulate that wherever duty amount is increased at any appellate stage, in that case in order to avail the benefit of 25% penalty, the assessee is required to pay differential amount within 30 days of the passing of the order by the appellate authority - the appellant did not comply with the requirements of the provisos to section 11AC of the Act since the appellant did not pay the amount of interest under section 11AC within a period of 30 days from the date of receipt of quantified demand. In view of this admitted position, it is not necessary to go into the details of payment made by the petitioner in respect of duty liability, interest and penalty - question is answered in favor of the Revenue and against the Assessee. Appeal allowed - decided in favor of Revenue.
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