Central Excise Act 1944
1[11AC. Penalty for short-levy or non-levy of duty in certain cases.-
Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reasons of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (2) of section 11A, shall also be liable to pay a penalty equal to the duty so determined:
2[Provided that where such duty as determined under sub-section (2) of section 11A, and the interest payable thereon under section 11AB, is paid within thirty days from the date of communication of the order of the Central Excise Officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. Of the duty so determined:
Provided further that the benefit of reduced penalty under the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso:
Provided also that where the duty determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the duty, as reduced or increased, as the case may be, shall be taken into account:
Provided also that in case where the duty determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of duty so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of the penalty have also been paid within thirty days of the communication of the order by which such increase in the duty takes effect.
Explanation : For the removal of doubts, it is hereby declared that --
1. Inserted (w.e.f. 28-9-1996) by s. 76 of the Finance (No.2) Act, 1996 (33 of 1996).2. Substituted (w.e.f. 12-5-2000) by s. 100 of the Finance Act, 2000 (10 of 2000).
3.Referred vide Circular No. 889/9/2009-CX Dated 21/5/2009