TMI Blog2011 (7) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... as countered the contention on the ground that appellants have not paid interest in this case - In find force in the contention of the appellants that interest was not quantified and no option was given to them for payment of reduced penalty - Decided in favor of the assessee Regarding penalty to director - there is no dispute that the director has made a confession statement admitting the offence I find force in the contention of the department that penalty under Rule 25 is subject to the provisions of Section 11AC which is not the case with penalty under Rule 26 - Penalty is reducet to Rs. 1 Lakh - E/1114 & 1115/09 - - - Dated:- 19-7-2011 - Mr. S.K. Gaule, J. Appearance: Shri V.S. Sejpal, Advocate for the appellants Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant ACC. A penalty each of Rs.2 lakhs was imposed on two brokers which is not subject matter of this case. The appellants challenged the same. The Commissioner (Appeals) upheld the order of the lower adjudicating authority. Hence the appeal. 4. The ld. counsel appearing for the appellants submitted that they are not contesting the confirmation of demand. They are only challenging the imposition of penalty on the appellant M/s ACC. The contention is that first proviso to Section 11AC provides for an option to pay 25% of penalty liable to be paid. The contention is that neither of the lower authority has given the option to pay and since the interest was not quantified and duty has already been paid they are eligible for option provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of demand. Therefore the issue remains to be decided is penalty on appellants ACC under Section 11AC and penalty on its director under rule 26. The director Manoj Arya who looks after day today work of the factory in his statement recorded under Section 14 of CEA 1944 recorded on 6.5.2005 has voluntarily admitted that they have received 300MT ingots from M/s. Amar Ispat without cover of Central Excise invoice without payment of duty. Therefore on confirmation of demand they have paid the duty voluntarily therefore the confirmation of demand and imposition of penalty under Section 11AC is sustainable. The only contention of the appellants is that no option has been given to them to pay penalty of 25%. Ld. JDR has countered the contention on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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