TMI Blog2017 (12) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... . The provisions of Section 11 AC indicate that when there is reduction of incidence of demand of duty, in the appellate proceedings, the penalty liability also has to be recalculated as per the provisions of Section 11 AC of CEA, 1944 and the first appellate authority should have extended the benefit of reduced penalty of ₹ 25% of the amount of ₹ 2,85,325/-. Appeal disposed off. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty liability of ₹ 2,85,325/-. Subsequently, the investigating authorities, after recording various statements of the buyers, a show cause notice was issued to various persons, which was after following the due process of law, a demand of ₹ 6,19,464/- confirmed imposing equivalent amount of penalty and penalty on the proprietor but dropped the proceedings initiated against he purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the first appellate authority has recorded there was no discrepancy in the stock of raw material and finished goods . He submits that alternatively, the first appellate authority should have extended the benefit of reduction of penalty from 2,85,325/- to 25% of the said amount as has been held by the Hon ble High Court of Gujarat in the case of Commissioner of Central Excise Customs, Surat- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corroboration is my view and the demand which is confirmed by the first appellate authority is correct, legal and does not require any interference, also interest liability thereunder. As regards the penalty, I find that the provisions of Section 11 AC indicate that when there is reduction of incidence of demand of duty, in the appellate proceedings, the penalty liability also has to be recalcula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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