9911796707
TMI Blog2024 (10) TMI 1460X X X X Extracts X X X X X X X X Extracts X X X X ..... he order-in-original dated 29.6.2018 OIO passed by the Assistant Commissioner sanctioning refund of Rs.66,34,414/- to the appellant. The facts that led to the issue of the impugned order are as follows. 2. The appellant is a manufacturer registered with the Central Excise department. A show cause notice dated 10.01.2013 was issued to the appellant which was adjudicated by the Commissioner by order dated 27.2.2014 confirming the following demands : a) Disallowance of CENVAT credit of Rs. 1,22,98,442/- and order of its recovery under Rule 14 of the CENVAT Credit Rules, 2004 read with section 11A of the Central Excise Act along with interest. b) Penalty of an amount equal to the above under Rule 15(2) of the CENVAT Credit Rules, 2004 read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er committed an error in sanctioning the refund because this Tribunal had in its Final Order dated 4.9.2017 confirmed demand of Rs.1,22,98,442/- along with equal amount of penalty and had not mentioned anything about reduction of penalty to 25% if the demand and penalty were paid within 30 days of the order in original. Therefore, the Commissioner (Appeals) held that penalty of equal amount under section 11AC is confirmed by this Tribunal and it should be reckoned and not the reduced penalty of 25% and therefore, refund was wrongly sanctioned by the Assistant Commissioner. 6. We have heard learned counsel for the appellant and learned authorized representative for the Revenue and perused the records. Relevant portions of section 11AC of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... munication of the order of the Central Excise Officer who has determined such duty, the amount of penalty liable to be paid by such person shall be twenty-five per cent. of the penalty imposed, subject to the condition that such reduced penalty is also paid within the period so specified; **** 7. A perusal of the above shows that the section itself provides for penalty equal to 100% and further provides that if the demand is paid along with penalty within 30 days of the order, the penalty shall be only 25%. Thus, both the penalty of 100% and its reduction to 25% on fulfilment of some conditions are mandatory. Even if penalty of 100% is imposed and it is not mentioned in the order in original that the penalty shall stand reduced to 25% i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
