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2013 (11) TMI 1538 - AT - Central ExciseImposition of penalty - Removal of goods without payment of Central Excise duty in terms of Rule 19(2) of Central Excise Rules, 2002 read with Notification No. 43/2001-C.E. (N.T.), dated 26-6-2001 - Held that:- Penalty imposed upon assessee is not justified inasmuch as the Rule 6 of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 lays down that where subject goods are not used for intended purposes, the manufacturer shall be liable to pay the amount equal to difference between the duty leviable on such goods but for the exemption and if duty has not already been paid, along with interest, the provisions of Section 11A and Section 11AB of Central Excise Act, 1944 shall apply mutatis mutandis for effecting such recovery. It may be noted that provisions of Section 11AC has not been made applicable under Rule 6 or any other Rule of said Rules, 2001. As such, no penalty can be imposed upon the assessee. - After having seen Rule 6 or the other provisions of said Rules, 2001, we find that provisions of Section 11AC has not been made applicable. As such, we set aside the penalty of ₹ 2,96,881/- imposed upon the assessee. - Decided against Revenue.
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