11AC of Central Excise Act, 1944 r/w Rule 9(2) and Rule 173 Q of the Central Excise Rules, 1944. He submitted that while issuing showcause notice under Rule 173Q of the Central Excise Rules, 1944 and r/w Section 11 AC of the Rules, there was no mention about the penalty and therefore the second respondent cannot impose the penalty equivalent to the demand made. He further submitted that while the petitioner filed an appeal before the first respondent and the first respondent directed the petitioner to deposit Rs.50,00,000/-(Rupees Fifty Lakhs only)as a condition for granting of waiver of pre-deposit and against the same this writ is filed. He further submitted that Rs.50,00,000/-(Rupees Fifty Lakhs only) ordered to be deposited by the first respondent was arrived at by applying 35.63% on the total amount of demand and penalty and if the penalty is excluded and the same percentage is applied after deducting Rs.2,88,417/-(Rupees Two Lakhs Eighty Eight Thousand Four Hundred and Seventeen only) which is barred by limitation, the amount liable to be deposited by the petitioner is only Rs.22,66,524/-(Rupees Twenty Two Lakhs Sixty Six Thousand Five Hundred and Twenty Four only) and the petitioner is prepared to pay the same, and therefore the pre-deposit amount of Rs.50,00,000/-(Rupees Fifty Lakhs only) is directed to be paid by the petitioner as per the order of the first respondent may be suitably modified to Rs.22,66,524/-(Rupees Twenty Two Lakhs Sixty Six Thousand Five Hundred and Twenty Four only).
