TMI Blog2009 (10) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... ty confirmed the demand of duty against the assessee to the extent of Rs. 6,75,126/-and imposed on them equal amount of penalty under Section 11AC. Against the order of adjudication, the assessee preferred appeal to the Commissioner (Appeals), who only sustained the decision of the lower authority. Hence the present appeal of the assessee. Held that- the department wanted to penalise the appellant under Rule 25. The authorities below, however, -chose to venture into the domain of Section 11AC, which was not warranted in this case. In this view of the matter, I should set aside the penalty imposed on the appellant. It is ordered accordingly. The appeal is allowed. - E/1435/2007 - A/679/2009-WZB/C-IV/SMB - Dated:- 29-10-2009 - Shri P.G. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent of Rs. 6,75,126/-and imposed on them equal amount of penalty under Section 11AC. Against the order of adjudication, the assessee preferred appeal to the Commissioner (Appeals), who only sustained the decision of the lower authority. Hence the present appeal of the assessee. 2. After hearing both sides and considering their submissions, I note that there is no dispute regarding duty liability. The entire amount of duty stands paid. The remaining question is whether any penalty is liable to be imposed on the appellant under Section 11AC of the Act in the facts and circumstances of this case. The penal provision invoked in the show-cause notice is "Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found with the penalty imposed on the assessee by the original authority. This argument cannot be considered without reservations. Section 11AC of the Act is a self-contained penal provision which enumerates the grounds on which a penalty under this provision could be imposed on a manufacturer of excisable goods and also specifies the quantum of penalty. Rule 25 is an independent penal provision wherein a penalty could be imposed on a manufacturer, on a registered dealer or a warehouse-owner on one of the four grounds enumerated alphabetically. This provision also lays down the quantitative extent to which such penalty could be imposed. The opening words "subject to the provisions of Section 11AC of the Act", in my view, only indicates tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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