2018 (12) TMI 773 – CESTAT KOLKATA – TMI – Penalty u/s 11AC – the Duty has been paid prior to the issuance of the SCN along with interest – Held that:- The Appellant Company had cleared the waste & scraps from their manufacturing facility under challans but subsequently, no Central Excise invoices were raised. However, on being pointed out, the discrepancy by the Central Excise Officers, the assessee did not dispute the clearance of waste & scraps generated in the course of production of finished goods and also admitted that the violation of the Statutory Provisons of the Central Excise Act was unintentional.
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The entire demand along with interest was deposited by the assessee much before the issuance of the Show Cause Notice – also,
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ctory to M/s. Om Trading Corporation, Howrah during the period from April, 2009 to March, 2010 under challans. No Central Excise invoice was issued against such challans. Statements of the Production Manager and the Chief Executive Officer of the Appellant Company were recorded. They admitted the clearnce of waste and scrap under challans and also admitted the duty liability of ₹ 3,75,000/- and paid through the Account Payee Cheque on 16/03/2010. Subsequently, a Show Cause Notice dated 24/06/2010 was issued alleging surreptitious removal of the waste and scrap and for recovery of Cenvat Duty along with interest and imposition of penalty and appropriation of the amount of ₹ 3,75,000/- already paid by the assessee. The Adjudicatin
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uring facility under challans but subsequently, no Central Excise invoices were raised. However, on being pointed out, the discrepancy by the Central Excise Officers, the assessee did not dispute the clearance of waste & scraps generated in the course of production of finished goods and also admitted that the violation of the Statutory Provisons of the Central Excise Act was unintentional. 7. I also find from the records that the entire demand along with interest was deposited by the assessee much before the issuance of the Show Cause Notice. I also observe that none of the Lower Authorities had intimated the assessee regarding option to pay penalty of 25% of the duty amount. 8. In view of the above discussions, the demand of Central Ex
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