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2013 (11) TMI 1024 - CESTAT NEW DELHIPenalty u/s 11AC of Central Excise Act dropped by the Commissioner (Appeals) - Clandestine removal of goods – Held that:- Following Union of India vs. Rajasthan Spinning and Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] - when the elements for imposition of penalty under Section 11AC are present, the penalty under this Section has to be imposed irrespective of whether the duty involved on the goods cleared clandestinely had been paid before the issue of show cause notice - the order waiving the penalty on the assessee company under Section 11AC is not correct. Penalty on Authorised Signatory under Rule 26 – Held that:- He himself had admitted that the goods found short were removed from the factory without payment of duty and without issue of invoice and he also accepted the duty liability, penal provision of Rule 26 would be attract as he has dealt with the goods found short and were removed from the factory without payment of duty and without issue of invoice - just because the duty on the goods paid before the issue of show cause notice, the same cannot be treated as the ground for non-imposition of penalty under Rule 26 – order set aside – Decided in favour of Revenue.
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