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2006 (9) TMI 381 - AT - Central ExciseDemand of central excise duty - Limitation - Suppression - Penalty - Interest on demand u/s 11AB - whether the fact of production of the pipes from imported goods was disclosed to revenue - HELD THAT:- We find that appellant’s duty paying documents did not at all mention the source of the inputs, while that was the crucial issue in relation to rate of duty. No mention about the source of the inputs was made in the classification declaration filed also. Therefore, we uphold the order in so far as it relates to limitation also. Duty paying documents, namely, gate passes and classification declaration which is the declaration relating to rate of duty, both did not disclose the source of raw materials, while the rate of duty depended entirely on that fact. In this factual situation, the revenue is right in contending that there is deliberate suppression of facts, which attracts penalty. We, therefore, uphold the imposition of penalty. However, taking all the facts and circumstances into account, penalty is reduced to Rs. 1,00,000/-(rupees one lakh only). It is being pointed out that such a demand is clearly contrary to sub-clause (2) of Section 11AB itself. There is merit in this contention. However, that does not settle the dispute relating to interest. It is well settled that statutory interest will be attracted irrespective of whether the claim has been specifically made in the orders or not. Therefore, revenue will be at liberty to claim interest as permissible under the statute at the rates in force during various periods. The appeal is ordered in the above terms.
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