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2011 (5) TMI 753 - CESTAT, CHENNAIPacking charges - payment of duty without including the cost of packing in the assessable value of the goods - levy of interest on the duty under the provisions of Section 11AB and imposition of mandatory penalty under Section 11AC of the Central Excise Act, 1944 - assessees explained that as per the established procedure, the packing charges have to be agreed upon with the Vehicle Factory, based on data to be furnished, and only after such agreement, the invoice could be raised – Held that:- assessees do not stand to gain if duty is not paid as duty has been reimbursed by the Vehicle Factory on payment of the same by the assessees, and therefore the charge of evasion of differential duty on packing charges cannot be sustained. The assessees, therefore, cannot be held to be guilty of suppression with intention to evade payment of duty and hence the ingredients of Section 11AC which are necessarily to be established for penal action under Section 11AC of the Central Excise Act are not attracted against them, liability of the assessees to interest (which has been paid by them) upheld but penalty set aside, appeal partly allowed
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