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Section 11AC is being substituted so as to rationalize the penalty as follows:
(i) in cases not involving fraud or collusion or wilful mis-statement or suppression of facts or contravention of any provision of the Act or rules with the intent to
evade payment of excise duty, in the following manner,-
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a) in addition to the duty as determined under sub-section (10) of section
11A, a penalty not exceeding 10% of the duty so determined or Rs.5000
whichever is higher shall be payable;
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b) if duty and interest payable thereon under section 11AA is paid either
before issue of show cause notice or within 30 days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of said duty and interest shall be deemed to be concluded;
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c) if duty as determined under sub-section (10) of section 11A and interest
payable thereon under section 11AA is paid within 30 days of the date
of communication of order of the Central Excise Officer who has
determined such duty, the amount of penalty shall be equal to 25% of
the penalty so imposed, provided that such reduced penalty is also paid
within 30 days of the date of communication of such order.
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a) in addition to the duty as determined under sub-section (10) of section
payable shall be 50% of the duty so determined.
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b) if duty and interest payable thereon under section 11AA is paid within
30 days of communication of show cause notice, the amount of penalty payable shall be 15% of the duty demanded, provided that such reduced penalty is also paid within 30 days of communication of show cause notice and all proceedings in respect of said duty, interest and penalty shall be deemed to be concluded;
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c) if duty as determined under sub-section (10) of section 11A and interest
payable thereon under section 11AA is paid within 30 days of the date
of communication of order of the Central Excise Officer who has
determined such duty, the amount of penalty shall be equal to 25% of
the duty so determined, provided that such reduced penalty is also paid
within 30 days of the date of communication of such order; and
(iii )(a) If the duty amount gets modified in any appellate proceeding, then the
penalty amount mentioned in (ii) (a) above and interest shall also stand modified accordingly. Where the duty amount is increased in the appellate proceedings, the benefit of reduced penalty as specified shall be admissible if duty, interest and reduced penalty in relation to such increased amount is paid within 30 days of such appellate order.
(b) Cases where no show cause notice has been issued prior to the date on which the Finance Bill, 2015 receives the assent of the President, shall be governed by provisions of section 11AC as amended.
(c) Proceedings in the pending show cause notices can be closed – (i) on payment of duty, interest and penalty @ 15% of the duty in cases involving fraud, collusion, -willful mis-statement, etc. can be paid within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time.
statement, etc. and (ii) on payment of duty and interest in cases not involving fraud, collusion, willful mis-statement, etc., within 30 days of the Finance Bill, 2015 receiving the assent of the President. In all cases where show cause notices are adjudicated after the Finance Bill, 2015 receives the assent of the President, reduced penalty @ 25% of the duty in cases involving fraud, collusion, willful mis-statement, etc. and 25% of the penalty imposed in cases not involving fraud, collusion, willful mis-statement, etc. can be paid within 30 days of communication of the adjudication order if the duty, interest and penalty is paid within such time.
