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2014 (2) TMI 568 - AT - Central ExciseCalndestine removal of goods - Intention to evade duty - Demand of differential duty - Imposition of penalty - Held that:- Extended period has been invoked and has been upheld on the ground that when the goods have been cleared to the sister unit, the duty was paid only on notional value since supply has been made to the sister unit. The Commissioner (Appeals) has also observed that the advocate for the appellant could not explain whether they were following this practice all along. He has observed that the advocate could not give a proper explanation - appellant had Cenvat credit of more than Rs. 10 lakhs in their account, the differential duty demand is only Rs. 1.24 lakhs approximately. This being the position, the appellant did not gain any benefit by undervaluing the inputs. Further there is no finding that the sister unit did not take the credit of the amount for the goods were diverted by sister unit for imposition of penalty under Section 11AC of the Central Excise Act, 1944 since duty with interest has not been challenged, it is necessary for the department to establish that there was any intention to evade duty. The circumstances of the case clearly show that there could not have been intention to evade duty - Decided in favour of assessee.
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