2018 (3) TMI 255 – CESTAT NEW DELHI – 2018 (363) E.L.T. 851 (Tri. – Del.) – Applicability of Section 11AC (1)(d) of CEA – case of appellant is that said provision nowhere further applies to adjudicate the matter relatable to confiscations etc – Held that: – the conclusion of proceedings in terms of sub section (d) is provided in respect of cases mentioned in sub-section (c). Sub-section (c) relates to the evasion of duty by reason of fraud or collusion. As such it has to be held that in cases of fraud conclusion etc., the entire proceedings would get finally concluded on an assessee depositing the dues as mentioned in sub-section (d), thus not permitted further adjudication relatable to the confiscation of the goods on the vehicle etc.
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Appeal allowed – decided in favor of appellant. – Appeal No. E/51932/2017-SM & E/50211/2018-SM – Final Order No. 50740-50741/2018 – Dated:- 23-2-2018 – Hon ble Mrs. Archana Wadhwa, Member ( Judicial ) Shri B. Bhushan, Advocate – for the appellant
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hey confiscated the goods with an option to the appellant to redeem the same on payment of redemption fine of ₹ 50,000/-. Further, the truck belonging to the owner Shri Chatarpal Singh who was also confiscated with an option to redeem the same on payment of redemption fine of ₹ 40,000/- 3. The contention of the ld. Advocate is that the said provision of law i.e. Section 11AC (1)(d) provides for conclusion of the entire proceedings subject to the payment of duty, interest and 15% of penalty. The said provision nowhere further applies to adjudicate the matter relatable to confiscations etc. 4. After hearing the ld. AR appearing for the Revenue, I reproduce the relevant Section 11AC(1) (c) & (d) of the Central Excise Act, 1944. The amount of penalty for non-levy or short-levy or non-payment or short-payment or erroneous refund shall be as follows: (c) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reas
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ifteen per cent of the duty demanded, subject to the condition that such reduced penalty is also paid within the period so specified and all proceedings in respect of the said duty, interest and penalty shall be deemed to be concluded. 5. As is seen from above, the provisions of sub-section (d) are invocable in respect of transactions mentioned in sub-section (c). The said sub section provides for conclusion of the proceedings in case an assessee deposits the dues as mentioned in the sub section within a period 30 days of the issue of the show cause notice. The said provision is with a purpose to reduce the litigation. However, the lower authorities have observed that as much as in the present case there was suppression with an intent to evade payment of duty, the confiscation of the goods as also the vehicle can be adjudicated upon. I find no merit in the above stand of the Revenue. On a careful reading of both the sub sections, an inevitable conclusion is drawn that the conclusion of
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