TMI Blog2012 (8) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... o paid within the period of 30 days referred to in that Proviso. The option to pay within 30 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. No Substantial error of law is committed by the Tribunal in giving benefit of the reduced to the respondent-assessee under the Proviso to section 11AC of the Act. The benefit of payment of reduced penalty can be availed by the assessee at the appellate stages also - appeal dismissed - decided against Revenue. - Tax Appeal No. 30 of 2012 - - - Dated:- 21-8-2012 - Mr. Vijay Manohar Sahai and Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified under Notification No. 8/2003-CE dated 1.3.2003. A show cause notice dated 12.08.2005 was issued which culminated into order passed by the adjudicating authority dated 27.02.2006 and the authority confirmed duty under Proviso to sub-section (1) of section 11A of the Central Excise Act, 1944 (hereinafter referred to as the Act for sake of brevity). The adjudicating authority passed the following order : 1. I confirm the demand of Central Excise duty amounting ₹ 23,84,917/- (Rupees Twenty Three Lacs Eighty Four Thousand Hundred Seventeen only) and Education Cess ₹ 47,698 /- (Rupees Fourty Seven Thousand Six Hundred Ninty Eighty only) under Section 11A of the Central Excise Act, 1944. The amount already paid vide T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with 25% of the penalty within a period of thirty days from the passing of the orders so as to reduce the penalty to 25%. The law declared in the above decisions is to the effect that if no such option stands granted by the lower authorities, the same can be granted by the higher appellate forum. Accordingly, while upholding the confirmation of demand of imposition of penalty to the extent of 100%, I give an option to the appellant to deposit the entire duty, interest and 25% of penalty within a period of thirty days from today, in which case the penalty shall stands reduced to 25%. 4. The only Issue which requires consideration in the present appeal is whether the Tribunal could have given the benefit to the assessee to pay the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s), the Appellate Tribunal or, as the case may be, the Court, then, for the purposes of this section, the duty, as reduced or increased, as the case may be, shall be taken into account: Provided also that in case where the duty determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the Court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of duty so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of penalty have also been 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 6.8.2012, same view is taken by this Court, and identical question is answered in favour of assessee. 6. Following the above decisions, it is held that no Substantial error of law is committed by the Tribunal in giving benefit of the reduced to the respondent-assessee under the Proviso to section 11AC of the Act. The benefit of payment of reduced penalty can be availed by the assessee at the appellate stages also. Reading the provision as a whole, it cannot be construed as limiting the benefit of reduced penalty at the original stage only. It is in consonance with the object of reducing the penalty on payment of entire dues within thirty days, that such benefit is made available at the appellate stage also. The substantial question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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