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2019 (6) TMI 954 - SC - Central ExcisePenalty u/s 11AC of CEA - period from 1-4-1994 to 16-1-1997 - whether the penalty could also be imposed under the aforesaid provision for the period prior to 28-9-1996 inasmuch as Section 11AC of the Act under which the penalty proceedings were initiated, was brought on the statute book by amendment only w.e.f. 28-9-1996? - HELD THAT:- It is held by the High Court itself in the impugned judgment that Section 11AC is prospective in nature. In spite of that the High Court has upheld the penalty imposed by the appellant for the entire period including the period prior to 28-9-1996 - We are of the opinion that here the High Court clearly fell into error. Undoubtedly, Section 11AC is a penal provision. Once it is held to be prospective in nature, it becomes effective only from the date it was brought into force i.e. 28-9-1996. Therefore, no penalty for the period prior to this date can be imposed under this provision. The penalty for the period 1-4-1994 to 27-9-1996 set aside - penalty from 28-9-1996 onwards is upheld - appeal allowed in part.
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