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2013 (10) TMI 261 - AT - Central ExcisePenalty u/s 11AC - Whether under Section 11AC of the Central Excise Act assesses were liable to be penalized - Assesse had removed a Horizontal Cold Chamber Pressure Die Casting Machine (which had been purchased on which CENVAT credit had been taken to another unit without reversing the credit - Held that:-The assesse had tacitly admitted their liability to have reversed the CENVAT credit at the time of removal of the capital goods - They also voluntarily paid interest u/s 11AB - These payments cannot be accepted as payments under sub-section 2B of Section 11A of the Act inasmuch as these were made under compulsion - the question of invoking Explanation 3 ibid does not arise. Penalty u/s 11AC of the Central Excise Act read with Rule 15(2) of the CENVAT Credit Rules, 2004 - Held that:- The penalty was unquestionable in the case The grounds for invoking the extended period of limitation were identical to the grounds for invoking Section 11AC - where mens rea stands accepted in relation to the demand of duty, it had to be accepted by the assesse vis-vis the proposal for imposition of penalty under Section 11AC - If that be so, where the demand had not been contested on the ground of limitation - it was not open to the assessee to oppose the Section 11AC penalty. Extended Period of Limitation u/s 11A(1) of the Act - Held that:- The assesse did not choose to contest the demand on the ground of limitation, thereby virtually accepting the allegation of suppression - It was not in dispute that the show-cause notice invoked the extended period of limitation on the ground of suppression of facts with intent to avail undue CENVAT credit.
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