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TMI Blog2016 (5) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) Central Excise & Customs, Nashik. 2. The issue involved in the present case is that if the main appellant, against whom, the demand of excise duty, interest and penalty were proposed, discharge the liability of duty, interest and 25% of penalty within one month from the date of show cause notice whether the proceedings against Co-noticees in the same show cause notice shall stand concluded and whether they are not liable for penalty under Rule 26 of Central Excise Rules, in terms of proviso to Sub-Section 2(2) of Section 11A of Central Excise Act. The Ld. Commissioner (Appeals) in his orders contended that as per the first proviso to Sub-Section (2) of Section 11A, the proceedings in respect of such person and other person to who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the main assessee against whom the duty demand was proposed, pays duty, interest and 25% penalty, the proceedings against such person as well as all other persons involved in the same show cause notice should stand concluded, no penalty can be imposed on other co-noticees. In support of this submission the Ld. Counsels placed reliance on the following judgments: (i) Raman Gandhi vs. Commissioner of Central Excise, Delhi 2015 (323) E.L.T. 579 (Tri.Del.) (ii) Commissioner of Central Excise, Raipur Vs. Abir Steel Rolling Mills 2013 (296) E.L.T. 90 (Tri. - Del.) (iii) Commissioner of C.Ex., Raipur Vs. Gopal Prasad Sultania 2013 (293) E.L.T. 271 (Tri.Del.) (iv) Guardian Castings Pvt. Ltd. Ravindra C Aggarwal Vs. Commissioner of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of show cause notice. The proceedings against the present appellant should also stands concluded along with the main assessee. I find that on the very same legal issue various Benches of this Tribunal and also Hon'ble P & H High Court has held that once the main assessee pays duty, interest and 25% of penalty within one month of the show cause notice other co-noticees against whom the penalty under Rule 26 was proposed, proceedings their against shall also be concluded. Accordingly, no penalty can be imposed in terms of proviso to Section 11A(2) of the Central Excise Act. The operative portion of the various judgments are reproduced below: (i) In the case of Jai Ambey Metal Works Pvt. Ltd. (supra)held that - "7. In the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) In the case of Technovinyl Polymers Limited (supra) held that 6. In my considered view, the apprehension of the Revenue seems to be misplaced to that extent that the provisions of Section 11A(1A) of Central Excise Act, 1944 read with proviso to sub-section (2) of the said Section 11, very clearly indicates that if an assessee discharges the entire duty liability along with interest and 25% of the amount of duty liability, then the proceedings comes to an end. Provisions also indicate that there is no need for issuance of show cause notice. It is pointed out by the learned DR that in this case, the duty liability has been discharged after the issuance of show cause notice. In my view, the benefits which are available to an assessee prio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les are not justified. 7. In view of above, both the appeals are dismissed. From the above judgments of various Benches of the Tribunal as well as the judgment of Hon'ble High Court of P&H in the case of Vikas Garg (supra), the issue involved in the present appeal has been settled and according to the rulings, proceeding of all the noticees to whom the show cause notice was issued shall stand concluded if the main assessee discharge the duty, interest and 25% penalty within one month of the show cause notice. As regard the judgment cited by the Ld. A.R. in case of Shri Anand Agarwal & Others (supra) and Shri Ghanshyamdas C. Goyal (supra). I observe that in the case of Shri Anand Agarwal & Others (supra) all the other judgments as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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