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2009 (10) TMI 324 - CESTAT, MUMBAIPenalty- suppression of insurance claim- The appellant was engaged in the manufacture of excisable goods during the material period. Some time in July/August, 2005, machinery and materials in their factory suffered heavy damage due to floods of the monsoon. The appellant made an insurance claim and also intimated the above incident to the department. Later on, department issued a show-cause notice alleging inter alia that the appellant had suppressed the insurance claim and short-paid duty on their finished goods which were removed from their factory after the aforesaid incident. The original authority confirmed the demand of duty against the assessee to the extent of Rs. 6,75,126/-and imposed on them equal amount of penalty under Section 11AC. Against the order of adjudication, the assessee preferred appeal to the Commissioner (Appeals), who only sustained the decision of the lower authority. Hence the present appeal of the assessee. Held that- the department wanted to penalise the appellant under Rule 25. The authorities below, however, -chose to venture into the domain of Section 11AC, which was not warranted in this case. In this view of the matter, I should set aside the penalty imposed on the appellant. It is ordered accordingly. The appeal is allowed.
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