TMI Blog2017 (10) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoked. Penalty u/s 11AC - invocation of section 11D - Held that: - The fact that such duty has been collected and retained by the appellant will necessarily attract Section 11D also. The lower authorities invoking such provisions of Section 11D for already collected tax but not deposited to the Government by itself will not mitigate the demand under Section 11A which is legally sustainable. In fact, the amount which was collected in excess of due amount liable to the Government, but collected in the name of excise duty shall also be deposited under Section 11D. Interest - Held that: - interest in terms of Section 11AB should be attributable only to Central Excise duty not paid in time by the appellant, however, the said interest will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty and demand of interest on the non-paid duty amount. The case was adjudicated and finally appeals reached the Tribunal. The Tribunal vide their Final Order No.114 115/2002 dated 29.1.2002 remanded the matter to the original authority to examine the issue afresh and pass proper orders. Specific reference was also made to the question of time bar and interest liability in terms of Section 11AB. Pursuant to the remand order, the original authority again decided the case and held that the extended period is correctly invoked and the appellant is liable to pay excise duty under Section 11A. On appeal, the Commissioner (A) vide the impugned order upholding the original order also held that penalty under Section 11AC is rightly imposable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount which are liable to be paid as excise duty and demanded under Section 11A. In other words, in any normal course of clearance of goods, the appellant should have paid Central Excise duty of ₹ 6,01,495/-. This amount has already been collected by the appellant from their buyers and not deposited to the Government as per the period prescribed by the Rules. As such, it is the submission of the learned AR that the penalty which is relatable to Section 11A demand and interest relatable to such demand has necessarily to be discharged by the appellant. The total amount confirmed under Section 11D happen to include demand under Section 11A by itself will not make the full amount as not liable to penalty or interest. 4. We have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount should be considered in terms of Section 11D. We are not in agreement with such proposition. It is clear that the appellant is liable to pay Central Excise duty during material period. They have not paid the said duty to the Government. However, they have collected the duty from the buyers. In that case, the provision of Section 11A has been rightly invoked for demanding the duty which is rightly payable by the appellant. The fact that such duty has been collected and retained by the appellant will necessarily attract Section 11D also. The lower authorities invoking such provisions of Section 11D for already collected tax but not deposited to the Government by itself will not mitigate the demand under Section 11A which is legally susta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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