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2013 (1) TMI 443 - AT - Central ExciseDemand - Captive consumption - Penalty u/s 11AC - Whether the 'wet starch', which is an intermediate product, emerges during the course of manufacture of final product 'Sago', which is exempted from payment of duty is liable to excise duty or not - Held that:- Following the decision in case of SHRI VARALAKSHMI CO. (2008 (8) TMI 661 - CESTAT, NEW DELHI) affirmed by the Hon'ble apex court. The issue is no longer 'res integra', therefore, the appellants are not liable to pay duty on 'wet starch' captively consumed in the manufacture of final product - 'Sago', which is exempted from duty Penalties are imposed u/s 11AC on account of non-payment of duty in time. The appellants were pursuing with the Ministry for making the product exempted from duty, therefore, the ingredients of Section 11 AC i.e., fraud, collusion, willful mis-statement, suppression of facts all contravention of the provisions of the Act and Rules thereunder with intent to evade duty are missing, therefore, penalty u/s 11AC is not imposable - In favour of assessee
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