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2016 (1) TMI 1188 - HC - Central ExciseValuation - physician samples - contravention of provisions of section 4 of the Central Excise Act r/w rule 4 of the Central Excise Valuation (Determination of Excisable Goods) Rules, 2000 - Held that: - It is noticed that duty demand of ₹ 9,17,616/- has already been paid by the assessee almost 10 months before issuance of show cause notice. Since the duty demand together with interest was paid before issuance of show cause notice and, since it was observed by both the authorities below that there was no intention on the part of the assessee to evade duty, the decision rendered by the Commissioner (Appeal) as well as CESTAT directing waiver of penalty under section 11AC of the Central Excise Act, 1944, does not appear to be erroneous. It has been observed that imposition of penalty under section 11AC of the Act is warranted only when there is fraud, collusion or wilful misstatement or suppression of facts or contravention of any provision of the Act or rules made thereunder with an intention to evade payment of duty. Since these circumstances do not exist in the instant matter, imposition of penalty worked out under section 11AC of the Act was not justified and has been rightly waived. Apart from that, as per the instructions issued by the Central Board of Excise and Customs on 17.12.2015, in respect of providing mandatory limit for filing appeal by the department before CESTAT, High Court or the Supreme Court, the threshold limit prescribed in that behalf should have been applied and the instant appeal ought not to have been presented by the revenue. Even otherwise, on consideration of merits of contentions also, no interference is called for in the appeal - appeal dismissed - decided against Revenue.
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