9911796707
TMI Blog2012 (10) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants. 1.1 While admitting the appeal, this Court formulated the following substantial question of law for consideration and determination. "Whether the Tribunal below committed substantial error of law in giving option to the respondent to deposit duty, interest and @ 25% of duty amount towards penalty within 30 days from the date of receipt of the order of the Tribunal for availing benefit of the reduced penalty under the proviso to section 11AC of the Central Excise Act, 1944 by overlooking the fact that such benefit can be availed of only within 30 days from the communication of the original order." 2. We heard learned Sr. Standing Counsel Mr. R.J. Oza assisted by learned advocate Ms. Rujuta Oza for the appellant department. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was that the lower authority ought to have given option to the appellant to pay the entire duty within 30 days and reduce the penalty amount to 25% in terms of Proviso to section 11AC. That was the only point required to be considered by the Tribunal. 4.1 It will be useful to extract relevant part of section 11AC of the Act. "11AC. Penalty for short-levy or non-levy of duty in certain cases. 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 short-paid or erroneously refunded by reasons of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een paid within thirty days of the communication of the order by which such increase in the duty takes effect." 4.2 As per the First Proviso of the section, if assessee pays duty and interest within 30 days from the date of communication of the order, the amount of penalty will be reduced to 25% of the duty determined and the assessee would have to pay penalty to the extent of 25% only. The Second Proviso says that the benefit of the First Proviso would be available provided that the reduced penalty is also paid within the period of 30 days referred to in that Proviso. The Third and Fourth Proviso are to the effect that if the penalty is enhanced by the appellate authority, the benefit of reduced penalty shall be available, if the amount i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days under the Proviso concerned to section 11AC of the Act, if not given by the adjudicating authority, such option should be given to the assessee at the appellate stage and the period of 30 days would commence from the date of giving such option. 5.2 The aforesaid position of law holds the field as on date. Learned counsel for the department could not dispute the same. 5.3 In the present case, the authorities did not give the option to the assessee, despite the law requiring to give such option. The Tribunal gave that option by observing: "The lower authorities have not extended any option to the appellant to pay the entire dues along with 25% of the penalty within a period of thirty days from the passing of the orders so as to reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
