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2015 (8) TMI 23 - AT - Central ExcisePenalty u/s 11AC - Valuation of goods - Rule 8 - appellant, at the outset, submitted that they are not disputing the duty demanded by the Revenue as the same was paid by the appellant even before issue of show cause notice, they are only disputing the penalty imposed under Section 11AC and Rule 25 of the Central Excise Rules, 2002. - Held that:- With the new cost of production it was found that there has been a short levy of ₹ 54,97,281/-. The said amount along with interest was thereafter paid by the appellant. If we see the conduct of the appellant, in our view, the ingredients of Section 11AC, i.e. wilful misstatement and suppression of facts are evident inasmuch as if the assessable value of certain goods are getting reduced w.e.f. January 2004 from the earlier assessable values, the appellant should have checked thoroughly the data. Further, when the Revenue raised the doubt about the value in August 2004, it was the duty of the appellant to recheck whether there has been any mistake on their part. Even this was not done. This only points to wilful misstatement and suppression of facts on the part of the appellant. The fact that they paid the duty in the month of February, to our mind, is of no consequence as once the Assistant Director (Costs) came into the picture and went into the various costing details, the appellant was left with no option. Under the circumstances, we are of the considered view that the ingredients of Section 11AC are satisfied and, therefore, the penalty under Section 11AC is leviable. - Decided against the assessee.
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