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2011 (4) TMI 795 - CESTAT, AHMEDABADPenalty u/s 11AC - Valuation u/s 4 or u/s 4A - Product Baygon All Insect Killer and Baygon Flying Insect Specialist - Held that:- The issue stand decided against assessee in their own case M/s Aero Industries Vs. CCE Vapi [2004 (6) TMI 13 - CESTAT, MUMBAI] wherein held that the said products are classifiable to pay duty u/s 4A - Hence, the Tribunal, while confirming duty has observed that the assessee being a SSI, can be granted benefit of interpretation of classification and Section 11AC is not invocable - However, the violation of the rules has been upheld, inasmuch as the correct duty was not arrived at and paid, thus calling for penalty under Rule 173Q(1) (erstwhile) - As such, the Tribunal has set aside the penalty 11AC but imposed penalty under Rule 173Q(1). Thus laying down that the provisions of Section 11AC are not attracted. As such reduce the penalty imposed upon the appellant to Rs.25,000/- in terms of Rule 25 of Central Excise Rules, 2002. Separate penalties of Rs.25,000/- and Rs.15,000/- imposed upon Shri Bhogilal L. Patel, Proprietor and Shri Shankarbhai J. Patel, Manager cum Authorised Signatory respectively imposed under Rule 26 of Central Excise Rules, 2002 are set aside.
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