[URGENT] Sec 11AC Penalty imposed A Clarification

Hello Sir. This is the fact of a case study. After a search in the factory of Mr XYZ, some documents and clandestine goods were seized. Now the excise duty has come to , say 10 Lac. Now the penalty has been imposed as per Sec 11 AC at 100% of the Duty. But if it paid within 30 days of the said period, the penalty is reduced to 25% of the duty. The Show Cause Notice has been issued by DGCEI who calculated the duty. Now the case has been forwarded to Additional Commissioner for levy of penalty, interest and personal penalty along with release of the seized goods. The Addl Com after going through the matter will pass a Demand Notice for final payment of Duty along with interest and other charges. Now my question is , which date one must consider for calculating 25% penalty, the date of Show Cause Notice by DGCEi, or Demand Notice by Additional Commissioner? Help would be highly appreciated.
Replies (5)

It will be from the day he Ast. Commissioner will issue demand notice.

Thanks a lot Bashista sir. Another query is should the reply to the Show Cause Notice be prepared in a special format or just plain reply with the reasons would suffice?

The reply is filed in a general format. It can be filed by the noticee on his letter head or by his authorised representative on his behalf. Do mention the Serial No. of the SCN on the reply. It is for administrative convinience.

Thanks sir.
The officers seized some excess goods which were not shown in the Books during the survey. Now my query is since the case has been concluded, how is the excess stocks be incorporated in the Books of Accounts(Stock Register) after its release order? Should the Departments issue a letter/intimation to show the excess goods? The officers themselves have no clear idea on this matter. So any informed advice would be grateful.

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