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TMI Blog2024 (1) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty amounting to Rs.15,10,278/- (Fifteen Lac Ten Thousand Two Hundred and Seventy Eight only) and order to recover from them under Section 11A(4) of the Central Excise Act, 1944. 3) I confirm the demand of CENVAT Credit amounting to Rs.6,02,144/-(Six Lac Two Thousand One Hundred and Forty Four only) and order to recover from them with interest under Rule 14 of the CENVAT Credit Rules, 2004. 4) I confirm the demand of amount of interest of Rs.19,599/-(Rupees Nineteen Thousand Five Hundred Ninety Nine only) and order to recover from them under Section 11AA of the Central Excise Act, 1944; 5) I order to appropriate the amount of duty of Rs.27,00,000/- (Rupees Twenty Seven Lac only) deposited by the party by various challans during the period of investigation against the demand of duty at SI. No.(1) and (2) above; 6) I confirm the demand of interest the appropriate rate payable on the said amount of Customs duty and Central Excise duty not paid by them against the demand of duty at SI. No.(i) and (ii) above, and order to recover from them under Section 28AA of the Customs Act, 1962 and Section 11AA of the Central Excise Act, 1944; 7) I impose penalty upon them amounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emands have been raised. It has been reported that in all such cases, penalty under section 114A is being imposed equivalent to the amount of duty which stands determined on the date of adjudication order. The Board has been requested to clarify as to whether mandatory penalty imposed under section 114A of the Customs Act, 1962 would be equal to the amount of duty or it would be equal to duty plus interest. Section 114A provides for levy of penalty equal to the duty or interest payable by a person in cases involving collusion or any willful mis-statement, or suppression of facts by the said person. Conjunction "or" in section 114A seems to be creating confusion at the field level. 2. The matter has been examined in consultation with the Ministry of Law. The Ministry of Law, has stated that Maxwell's Interpretation of Statutes (p-229) while dealing with conjunctions "or" and "and" provides that - "To carry out the intention of the legislature, it is occasionally found necessary to read conjunctions "or" and "and" one for the other." The Hon'ble Supreme Court in a case reported AIR 1957 SC p. 699 State of Bombay v. R.M.D. Chamarbougwala also read the word "or" as "and" to gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to carry out the intention of the legislature. It is occasionally found necessary to read the conjunction 'or' and 'and' one for the other. A Constitutional Bench of the Hon'ble Supreme Court in a case reported in AIR 1963 SC p. 1638 T.S. Govindlalji Maharaj v. State of Rajasthan has also observed that sometimes 'or' must mean 'and' as has been mentioned vide para 39 of the judgment. The administrative deptt. may process the matter keeping in view the above expressed legal position in respect of the word 'or' as per intention of legislation." 4.3 In accordance with said Circular, the orders imposing penalty equal to only duty were reviewed and appeals were filed by the department as has been done in the present case. These appeals have been dismissed as per the orders as follows: * Mangalore Refinery and Petrochemicals Ltd - 2014 (313) E.L.T. 353 (T); * Bharti Airtel Ltd & Ors [2012-TIOL-746-CESTAT-BANG] * Jewel Art, [2019-TIOL-627-CESTAT-MUM] * B. Suresh Vaudev Baliga [2015-TIOL-1461-CESTAT-BANG] * 3D Networks Pvt. Limited [2016-TIOL-3100-CESTAT-BANG] * Sesa Sterlite Ltd [2019-TIOL-1181-CESTAT-MUM] * Aban Offshore Limited [ 2019-TIOL-1082 CESTAT-MUM.] 4.4 In case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion may be made between positive and negative conditions prescribed by a statute for acquiring a right or benefit. Positive conditions separated by 'or' and read in the alternative but negative conditions connected by 'or' are construed as cumulative and 'or' is read as 'nor' or 'and'. [See : Principles of Statutory Interpretation by Justice G.P. Singh, 14th Edition.] 11. In the backdrop of aforesaid well settled legal principles with regard to statutory interpretation we may notice relevant extract of Section 114A of the Act, which reads as under : Penalty for short-levy or non-levy of 114A. duty in certain cases. - Where the duty has not been levied or has not been short-levied or the interest has not been charged or paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any willful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (2) of section 28 shall, also be liable to pay a penalty equal to the duty or interest so determined : 12. The aforesaid rule of statutory interpretation was referred to by Constitution Bench of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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