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2016 (12) TMI 1457 - AT - Central ExciseRecovery of interest and penalty - revision of prices of manufactured goods - duty not paid on revised prices - on pointing out duty was paid - time bar - whether, extended period of limitation in terms of the Proviso to Section 11A ibid can be invoked for recovery of interest on delayed payment of principle amount; and penalty can be imposed where there is no element of suppression, fraud, misstatement etc, with intent to evade payment of duty? - Held that: - this Tribunal in the case of Emco Ltd. [2012 (4) TMI 609 - BOMBAY HIGH COURT], has held that period of limitation not only applies to the principle amount but also the same applies for recovery of interest - interest liability confirmed in the impugned order will not stand for judicial scrutiny. Imposition of penalty u/r 25 read with Section 11AC of the Central Excise Act - Held that: - the authorities below have not specifically brought on record any evidence regarding the malafides on the part of the appellant to defraud the Government Revenue. Since Rule 25 ibid is subject to the provisions of Section 11AC ibid, which clearly provides that in case of fraud, collusion, willful misstatement, suppression of facts, equal amount of penalty shall be imposed, and in absence of any specific findings to that effect by the authorities below, I am of the view that penalty imposed in the adjudication order and confirmed in the impugned order is not sustained in the eyes of law. Demand of interest and penalty set aside - appeal allowed - decided in favor of appellant.
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