TMI Blog2018 (2) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... here it was held that The central excise duty is payable on the manufacture of excisable goods. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice. Appeal allowed - decided in favor of Revenue. - D.B. Customs Appeal No. 1 of 2014 - - - Dated:- 4-10-2017 - K.S. Jhaveri and Vijay Kumar Vyas, JJ. Shri Anuroop Singhi, for the Appellant. None, for the Respondent. JUDGMENT Despite service, nobody appears. 2. By way of this appeal, the appellant has challenged the judgment and order of the Tribunal wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of 25%, if duty demanded, is paid within 30 days of the order, and accordingly reduced the penalty to ₹ 47,643/-, i.e. 25% of the duty amount. 5. Learned counsel appearing for the Central Excise Department, submits that the Tribunal has committed a gross error of law, inasmuch as the reduction of the amount of duty to 25% under the first Proviso to Section 11AC of the Act is on payment of penalty, liable to be paid by such person, within 30 days from the date of communication of the order of the Central Excise Officer, determining the duty. The unamended provisions of Section 11AC of the Act, which were subsequently amended by the Act No. 10 of 2000, were clear that the reduction of duty to 25% is available, where duty is determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty. 6. The central excise duty is payable on the manufacture of excisable goods. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice. 7. The reliance placed by learned counsel appearing for the assessee on Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam, 2003 (54) RLT 317 (CEGAT-Bangalore), and CCE, Madras v. JKO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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