Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 66 - AT - Central ExciseFailure to pay the duty on time - Penalty under Section 11AC - Held that:- A perusal of invoice No.16 dated 8.6.2005 issued by the appellant clearly shows that though the duty has been charged, but the same was not deposited. Further, on the invoice, it is clearly mentioned that no sales tax is charged as the goods are being transferred to their own unit No.II which is situated in Andheri (East) and it appears that the goods were intended to be transferred to their own unit, but inadvertently instead of issuing challan, the appellant has wrongly issued the invoice. It is also a fact that the appellant has paid the duty along with interest on being pointed out by the audit officer of the respondent vide entry in PLA dated 27.11.2007. When there is no intention to evade payment of duty on account of fraud, wilful misstatement, suppression of fact etc. as mentioned in Section 11AC, the penalty cannot be imposed and further, for imposition of penalty under Section 11AC, the duty must be determined by the excise officer after giving sufficient opportunity to the appellant as required in Section 11A(10), which has not been done in this case and as per Section 11A(b), it is provided that the person chargeable to duty may, before service of notice under clause (a), pay on the basis of (i) his own ascertainment of such duty or, (ii) the duty ascertained by the Central Excise officer and if the person pays the duty along with interest payable thereon under Section 11AA, then as per sub-section (ii), the Central Excise officer shall not serve any notice upon him. Since in this case there is no determination of duty and in accordance with law as provided in sub-section (10) of Section 11A, therefore under Section 11AC, penalty cannot be imposed - Decided in favour of assessee
|