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2005 (7) TMI 555 - AT - Central ExciseDuty Demand - confiscation - Penalty - Misdeclaration of the final product due to misstatement with intent to evade payment of duty. - printing of PVC films/sheets - HELD THAT:- After considering the applications made it is to be held that for the period of demand viz 1994 to June 1996 vide Show Cause Notice dated 31-5-1999, the penalty u/s 11AC cannot be upheld, nor demands of interest u/s 11AB can be made. The orders as regards penalty u/s 11AC and interest u/s11AB are therefore required to be set aside. This Tribunal, in a catena of decisions, has also held that a joint penalty under Rule 173Q (1) read with Section 11AC of the Act per se cannot be upheld. We would therefore set aside the penalties and interest demands as arrived at. We find merits in the plea made by Mr Pradhan, before us, that the fact of cum-duty price has to be granted, if the goods are being considered to be dutiable and also that Modvat credit of the duty paid on the PVC sheets/films brought in for printing as the printed sheets/films are being held to be dutiable. We also find the ld. D.R.’s submission that the admitted position is that goods are going to sister concerns and there is no sale that is also required to be re-looked into, to find out if there was any cum-duty sales price existing for the period in question. Modvat credit would also be eligible, as per the catena of decisions on the subject. We would therefore set aside this order and remit the matter back to the ld. Commissioner to redetermine the duty liability, if any, credit eligibility and thereafter determine the liability under Rule 173Q(2) and redemption fine thereof. The penalty clauses as invoked and determined not being upheld. The appeal is therefore allowed in above terms for de novo adjudication.
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