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2017 (5) TMI 280 - AT - Central ExciseSSI exemption - appellant have been erroneously availing the benefit of Notification No.8/2003 to calculate the duty liability; but discharged the same with interest on 12/06/2006 and informed the department on 21/06/2006 - demand of interest - penalty u/s 11AC - Held that: - charge to evade Central Excise duty, was based only on an allegation that appellant being in the organized sector should have known the law and should have read the notification correctly before availing the benefit and it cannot be said that they were unaware of the law. Only on this allegation it has been stated that appellant has suppressed the fact from the department with intention to evade Central Excise duty, which is not correct. Provisions of Section 11A(2B), as it stood during the relevant period, specifically states for non-issuance of show cause notice on discharging duty liability and the interest thereof, on ascertainment of duty liability by an assessee on their own or on being pointed out by the Central Excise officer. As already recorded herein above, it is the claim of appellant that due to mis-interpretation of the clause of the notification the duty was short paid during the relevant period, which made good by the appellant before issuance of show cause notice. If this be so, it cannot be said that the appellant had intention to evade payment of Central Excise duty on the branded goods manufactured and cleared by them. The decision of the apex Court in the case of Chamundi Die Cast (P) Ltd [2007 (5) TMI 55 - SUPREME COURT OF INDIA] specifically holds that if an assessee acted on genuine belief that they were covered by the exemption notification, it cannot be held against them and hold that there was intention to evade duty. Penalty set aside - duty with interest upheld - appeal allowed - decided partly in favor of appellant.
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