TMI Blog2009 (8) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... s preferred by the appellant against the impugned order wherein 100% penalties were imposed on them where the appellant has already reversed the Cenvat Credit availed along with the interest. The issue involved in this case is quantum of penalty where the appellant has paid the duty and penalty before the issuance of show cause notice. 2. Heard. 3. The learned Counsel for the appellant submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on Union of India v. Rajasthan Spinning Weaving Mills - 2009 (238) E.L.T. 3 (S.C.). 5. Before going into the facts of the case, I have to see the provisions of Section 11AC which deals with the penalty which are reproduced here as under :- 11AC. Penalty for short-levy or non-levy of duty in certain cases.- Where any duty of excise has not been levied or paid or has been short-levied or sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther that the benefit of reduced penalty under the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty day referred to in that proviso : Provided also that XXX XXX XXX Provided also that XXX XXX XXX 6. It is clear from the provisions of Section 11AC of the Act and its two provisos, has given meaningful interpretation. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice, the penalty under Section 11AC (first proviso) of the Central Excise Act, 1944 is to be restricted upto 25% of the duty. On these observations, the penalty be reduced to 25% of Rs. 4,22,413/- under Section 11AC of the Central Excise Act, 1944. The appellant shall make deposit of the said reduced penalty within 30 days failing which, full amount of the penalty shall be payable. 8. In these t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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