TMI Blog2011 (3) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of the first proviso to Section 11A(2), are erroneous and not sustainable. - E/959 to 961 of 2011 - A/822-824/2011-WZB/AHD - Dated:- 11-3-2011 - Hon'ble Mrs. Archana Wadhwa, Member (Judicial) Appellant : Ms. Avani Mehta, Advocate Respondent : Shri R.S. Srova, JDR Per : Mrs. Archana Wadhwa; After dispensing with the condition of pre-deposit of penalties I proceed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he illegally removed final products by M/s. Hariom Industries. 3. It is seen that M/s. Hariom Industries, after issuance of show cause notice accepted all the liabilities and paid the entire duty of Rs. 11,84,479/- along with interest of Rs. 1,41982/- and penalty equivalent to 25% of the duty amount. 4. Joint Commissioner in his impugned order held that the proceedings against M/s. Hariom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands concluded, in terms of the Proviso to sub-section 2 of section 11A of the Central Excise Act, 1944., the Revenue can proceed against the above co-noticees for imposition of penalties or not. 7 For better appreciation, the relevant provisions of Section 11A are being reproduced below :- (1A) When any duty of excise has not been levied or paid or has been short levied or short paid or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty of excise due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined. [Provided that if such person has paid the duty in full together with, interest and penalty under sub-Section (1A), the proceedings in respect of such person and other persons to whom notice are served under sub-Section (1) shall, wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a show cause notice against the main noticee and all the co-noticees. 8. In view of the above discussion, the imposition of penalty upon the present appellants who are co-noticees, under rule 26 of Central Excise Rules, when the proceedings against the main noticee stands concluded in terms of the first proviso to Section 11A(2), are erroneous and not sustainable. The same are accordingly set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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