Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 841 - AT - Central ExciseLevy of Mandatory penalty or not - Violation of provisions of Sections 11AC and 11AB - Held that:- Admittedly, in this case goods had been cleared in the month of September, 2004 and duty liability arose by the end of September, 2004. Moreover, the goods had been cleared through delivery challans and the weighment slips were duly recorded in their records, therefore the provisions of Section 11AC of the Act, i.e. fraud, collusion, wilful misstatement, suppression of facts and contravention of the provisions of the Act/Rules with intent to evade payment of duty, are not attracted. Therefore, mandatory penalty for these acts is not leviable. Further, I find that a penalty is proposed to be imposed on shortages of inputs. I find that the respondent had purchased 11,004 MT in a period of six months and there is a negligible shortage of 29 MT in their inputs and that may occur due to the weighment of inputs on various weighment machines. In these circumstances, it cannot be held that the respondent had cleared the inputs clandestinely and no evidence has been produced by the Revenue to this effect. In these circumstances, the provisions of Section 11AC of the Act are not attracted, therefore mandatory penalty is not leviable - As the respondent has paid the duty within the same month, therefore interest is not leviable - Decided against Revenue.
|