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2016 (3) TMI 400 - AT - Central ExciseDuty demand on Free supplies - equivalent penalty under Section 11AC - suppression - Held that:- We find force in the arguments of the learned Advocate that at the relevant time, there was sufficient reason for the Appellants to have had bonafide belief that duty is not payable on the free supply of goods in view of the decision of the Tribunal in the case of Vinayaka Mosquito Coil Mfg. Co. (2004 (8) TMI 179 - CESTAT, BANGALORE ). As the issue was under dispute and was finally settled only later by the decision of the Larger Bench in the case of Indica Laboratories Pvt. Ltd (2007 (5) TMI 19 - CESTAT,AHMEDABAD ), imposition of equivalent penalty under Section 11AC is not justified. Hence, we set aside the imposition of penalty under Section 11AC in respect of both the appeals - Decided in favour of assessee
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