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2015 (1) TMI 584 - CHHATTISGARH HIGH COURTPenalty u/s 11AC - Non-payment of duty on the price escalation amount received - Supplied concrete sleepers to railways under contract with price escalation clause - The price differential on account of price escalation from back date was received by the appellant in the year 1999 - Neither the duty was paid by the appellant nor the receipt of price differential was intimated to revenue - Held that:- The Assessee did not inform about the clause regarding escalation of the price; the bills claiming the escalated price; and the escalated price received by the Assessee - The Assessee neither applied for the provisional assessment nor paid excise duty when the escalated bills were raised or payment was received - A part of excise duty was paid only when it was pointed out by the DGAE - findings clearly show that the Assessee wanted to evade duty. These findings have been upheld by the Tribunal. There is no illegality in these findings. In view of this it is held that the Assessee is liable to pay penalty under Section 11AC of the Act. Section 11AC was inserted in the Act with effect from 28-9-1996, that is to say that the penalty under Section 11AC of the Act could only be imposed w.e.f. 28-9-1996. In view of the same, only penalty equal to the amount of the excise duty short-paid for the period from 28-9-1996 to 31-8-1998 can be imposed. - Decided partly in favour of assessee.
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