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2015 (10) TMI 1327 - AT - Central ExcisePenalty u/s 11AC - Evasion of duty - Held that:- Persons that does not show the reason why the department failed to ask question to know the reason why the duty collected was not deposited. Department has not come out with clear evidence to show malafides of the appellants or their contumacious conduct to establish evasion. - Section 11AC of Central Excise Act, 1944, has two essential ingredients. First ingredient is "intention" and the second one is "evasion". From the totality of the reading of the records, that nowhere exhibits the intention of the appellants to defraud Revenue with a view to cause evasion or deliberately suppressed facts. No doubt, awaiting registration, appellant made first clearance but realized duty. There is nothing on record to show habitual conduct of evasion not being discovered by any direct or circumstantial evidence. Intention of the appellant does not appear to be evasive. Therefore, presumption of ill intention to cause evasion is impermissible on the facts and circumstances of the case. Therefore, there shall not be penalty on both the appellants. - Decided in favour of assessee.
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