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2017 (4) TMI 322 - AT - Central ExciseShortage of stock - imposition of penalty - Held that: - The penalty u/s 11AC is imposable to the extent of 100% of duty evaded by the manufacturer. Whether the present case is a case of duty evasion by resorting to clandestine activities or is a case of bona fide action is required to be examined. As already observed, that the clearance of product during a holiday, which product is already entered in the records, without raising an invoice can be considered to be a bona fide action of the assessee, thus not inviting any penal action against them in terms of Section 11AC. However, the fact remains that the goods were cleared without payment of duty and without raising the invoices, though may be, under compelling circumstances, thus inviting penal action u/R 25 - imposition of penalty of ₹ 1 lakh in terms of the provision of Rule 25, would be justifiable - appeal rejected - decided partly in favor of assessee in terms of reduction of penalty.
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