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TMI Blog2011 (5) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... contacts chargeable to Central Excise duty. A show cause notice dated 29.08.07 was issued to them for confirming duty demand of Rs.1,23,736/- along with interest in respect of clearance of electrical contacts, appropriation of an amount of Rs.1,23,736/- payment of duty already deposited by them and the imposition of penalty on them under Rule 25 of Central Excise Rules. Besides this, show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olding the duty demand, reduced the penalty on the respondent - M/s Allied Industries to 25% of the duty amount under proviso to section 11AC read with Rule 25, on the ground that the respondent had paid the duty amount before the issue of show cause notice. Penalty on Shri Dinesh Saini was also reduced to Rs.25,000/-. Revenue is in appeal against the Commissioner (Appeals) s order reducing the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of communication of adjudication of order and the reduced penalty of 25% duty has also paid within same period. (ii) The said period of 30 days is calculated from the date of communication of the order passed by a Central Excise Officer determining the duty. (iii) The reduced 25% penalty is also paid within 30 days of the date of communication of the order passed by the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he quantum of penalty is discretionary, that since in the original adjudication order, the penalty has been imposed under Rule 25 only, the same has been rightly reduced by the Commissioner(Appeals) and that in view of this, there is no infirmity in the impugned order. 5. I have carefully considered the submissions from both the sides and have perused the records. 6. On going throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Appellate authority cannot travel beyond the show cause. In view of this, the department cannot plead that the penalty imposed was under section 11AC and its reduction is only subject to the condition prescribed in 1st and 2nd proviso of section 11AC. Since the penalty had been imposed under Rule 25 of Central Excise Rules where the quantum is discretionary, there is no informity in the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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