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2015 (6) TMI 1040 - AT - Central ExciseNon-payment of the Central Excise Duty liability - Confirmation of demand and penalty - Held that:- Duty liability has been discharged by the appellant on each and every clearance of the finished product from the factory by utilizing cenvat credit, such payment is in conformity with the above statutory provisions. Thus, confirmation of the duty demand by the authorities below is not in agreement with the statutory mandate. Imposition of penalty under Rule 25 of the Central Excise Rules read with section 11 AC of the Central Excise Act 1944 has no application in the present case, inasmuch as, non-payment of duty as prescribed in Rule 8 (3A) of the Central Excise Rules, 2002 is not attributable to suppression, wilful misstatement or contravention of any of the provisions of the Rules, with intent to evade payment of duty Considering the fact that the duty attributable to removal of excisable goods has not been paid by the appellant within the stipulated time, the provisions of Central Excise Rules, 2002 have been violated, for which penalty can be imposed under Rule 27 of the rules. Accordingly, penalty imposed in the adjudication order and confirmed in the impugned order are set aside and the same is restricted to ₹ 5,000/- under Rule 27 of the rules. Since there is no element of mensrea in the present case, imposition of penalty on the Director of the company is not justified and accordingly, the impugned order confirming the penalty amount on the Directors is set aside.
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