10 September 2012
Where duty is paid by the assessee before the issue of notice but after it has brought to his notice on raising an objection by audit team etc. then in addition to duty and interest he has to pay penalty equal to one per cent. of such duty per month to be calculated from the month following the month in which such duty was payable, but not exceeding a maximum of twenty-five per cent. of the duty, and inform the Central Excise Officer of such payment in writing.