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2013 (12) TMI 1392 - AT - Central ExcisePenalty u/s 11AC of Central Excise Act r.w. Rule 15 of the Cenvat Credit Rules and Rule 25 of the Central Excise Rules – Reversal under Rule 3(5) of Cenvat Credit Rules, 2004 - Held that:-Commissioner has imposed penalty on the ground simplicitor that there has been procedural and technical violation of the Rules, even though he has held that there was no intention on the part of the assessee to do so – the detection of mistake was by the assessee himself - penal provisions are relatable to mala fide intention of the assessee, who is being penalized - As such it has to be first seen as to whether the provisions of Section 11AC are invocable or not – Following Union of India v. Rajasthan Spinning & Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] - Section 11AC of Central Excise Act is not applicable to every case of non-payment or short-payment of duty - Conditions mentioned in Section 11AC should exist for imposition of penalty thereunder - the Commissioner has himself held that there is no mala fide on the part of assessee, thus, there was no reason to uphold the imposition of penalty upon the appellant – penalty imposed upon the assessee set aside – Decided in favour of Assessee.
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