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2015 (3) TMI 1110

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..... an end. - Decided in favor of appellant. - E/50564/2014-EX(SM) - Final Order No. A/51008/2015-EX(SM)(BR) - Dated:- 25-3-2015 - Shri Ashok Jindal, Member (J) Ms. Ashmita Nayak, Advocate, for the Appellant. Shri V.P. Batra, DR, for the Respondent. ORDER The appellant is in appeal against the impugned order imposing penalty thereon under Rule 26 of the Central Excise Rules, 2002. 2. The facts of the case are that the main party namely M/s. Sadbhavana Enterprises paid the amount of duty in question along with interest and 25 per cent of duty as penalty within a period of 30 days of issuing of the show cause notice. A Penalty of ₹ 15,000/- was imposed on the appellant under Rule 26 of Central Excise Rules, 2002. T .....

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..... grawal - 2013 (288) E.L.T. 90 (Tribunal). 5. Heard the parties, considered the submissions. 6. I have gone through the circular issued by the CBEC as per the circular the intent of the CBEC is that if duty, interest and 25 per cent of duty as penalty has been paid within 30 days of receipt of the show cause notice, therefore, same will amount to conclude adjudication procedure. So the mandate of the CBEC circular is clear that if duty, interest and 25 per cent duty as penalty has been paid within 30 days of the issuance of the show cause notice, the adjudication proceedings come to an end. Further, the contention of the ld. AR is that the appellant has been issued show cause notice separately, I have gone through the show cause notice .....

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..... ther the benefit of 1st proviso to Section 11A(2) can be extended when the assessee could not exercise the option under Section 11A(1A) within 30 days of receipt of show cause notice for the reason that the show cause notice did not mention the option available to the assessee under Section 11A(1A) and the Tribunal has decided this question in the favour of the assessee. However a Coordinate Bench of this Tribunal (Single Bench) in the case of Anand Agrawal (supra) has held that since the words such person and other persons in proviso to sub-section (2) are qualified by the expression to whom Notice are served in sub-section (1) , the words other person would not cover, those persons who have been show caused by the same show cause n .....

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..... o Section 11A(2), which would make the words other persons redundant, which is not permissible In my view, therefore, the words other persons used in first proviso to sub-section (2) would cover the co-noticees/persons who face the allegations of contravention of Central Excise Rules, which are linked with the allegation of deliberate/fraudulent short payment, non-payment or erroneous refund of duty against the person chargeable with duty facing the duty demand i.e. the persons who are alleged to have knowingly dealt with the excisable goods, liable for confiscation in the manner mentioned in Rule 26(1) of the Central Excise Rules, 2002 and for this reason have been show caused for imposition of penalty under this Rule, either in th .....

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