JUDGMENT K.S. Jhaveri, J. - Despite service, nobody appears. 2. By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal preferred by the assessee. 3. This Court while admitting the appeal on 11-5-2015, framed the following substantial question of law :- "(i) Whether the Tribunal can override the statutory provisions enshrined in the law inasmuch as the second proviso to Section 114A of Customs Act, 1962, has been ignored in reducing the penalty wherein specific provisions are enlisted that the benefit of reduced penalty shall be available only when penalty is paid within 30 days of the date of communication of the Order which is not in the present matter?" 4. Counsel for the appellant contended that the issue is squarely covered by the decision of this Court in D.B. Central Excise Appeal No. 40/2009, Commissioner of Central Excise, Jaipur-I v. M/s. Lucky Plast Ltd., decided on 2-3-2015 [ 2015 (323) E.L.T. 40 (Raj.)] , wherein the learned Division Bench of this Court while considering the matter, decided the issue in favour of department. It has been observed as under : - "4. The Tribunal, relying on the judgments of this High Court in Arora Products v. Addl. Commr. of Central Excise [2009 (235) E.L.T. 818 (Raj.)] , the Punjab and Haryana High Court in Commissioner of Central Excise, Delhi v. Machino Montell (I) Ltd. [ 2006 (202) E.L.T. 398 (P&H)] , and the Delhi High Court in CCE v. Malbro Appliances P. Ltd. [2007 (208) E.L.T. 503 (Del.)] , and relying upon the first Proviso to Section 11AC of the Act, held that the Act provides for penalty of 25%, if duty demanded, is paid within 30 days of the order, and accordingly reduced the penalty to Rs. 47,643/-, i.e. 25% of the duty amount. 5. Learned counsel appearing for the Central Excise Department, submits that the Tribunal has committed a gross error of law, inasmuch as the reduction of the amount of duty to 25% under the first Proviso to Section 11AC of the Act is on payment of penalty, liable to be paid by such person, within 30 days from the date of communication of the order of the Central Excise Officer, determining the duty. The unamended provisions of Section 11AC of the Act, which were subsequently amended by the Act No. 10 of 2000, were clear that the reduction of duty to 25% is available, where duty is determined under sub-section (2) of Section 11 and interest payable under Section 11AB of the Act, is paid within 30 days from the date of communication of the order of the Central Excise Officer, determining such duty, and not from the date of issuance of the show cause notice. The unamended Section 11AC with its first Proviso, is quoted as below :- "(2B) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person, chargeable with the duty, may pay the amount of duty (on the basis of his own ascertainment of such duty or on the basis of duty ascertained by a Central Excise Officer) before service of notice on him under sub-section (1) in respect of the duty, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the duty so paid : Provided that the Central Excise Officers may determine the amount of short payment of duty, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section, and the period of "one year" referred to in sub-section (1) shall be counted from the date of receipt of such information. Explanation 1. - Nothing contained in this sub-section shall apply in a case where duty was not levied or was not paid or was short-levied or was short-paid or was erroneously refunded by reason of fraud, collusion or any wilful 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." 6. The central excise duty is payable on the manufacture of excisable goods. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice. 7. It is not payable on the issuance of the show cause notice, or at any time thereafter. The Proviso to Section 11AC is applicable, if the payment is made within 30 days of communication of the order levying penalty, and not from the date of issuance of the show cause notice. 7. The reliance placed by learned counsel appearing for the assessee on Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam, 2003 (54) RLT 317 (CEGAT-Bangalore) , and CCE, Madras v. JKON Engineering (P) Ltd., 2005 (67) RLT 157 (Madras) , is entirely misplaced. In Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam (supra), a decision by the CEGAT, first Proviso to the unamended Section 11AC was not considered. The judgment was rendered on equity, which is not applicable to the laws relating to central excise. The observation that since duty was deposited prior to the show cause notice, penalty could not be levied, is contrary to the principles settled in the central excise laws." 5. In view of above, issue is answered in favour of department. 6. The appeal stands allowed.