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2017 (7) TMI 886 - AT - Central ExciseManufacture - Aluminum frames, shutters and other parts of doors and windows - it appeared that the activity carried out by M/s. Ascon Arabian Aluminium Company (P) Ltd., amounted to manufacture and they have manufactured the same without obtaining Central Excise registration and cleared the same without following the Central Excise procedure and without payment of duty - Held that: - as per the direction of the Tribunal, the learned Commissioner has clarified the entitlement of modvat credit of ₹ 18,17,187/- which the Commissioner is held that the appellant is entitled to the same. Further the Commissioner has also reworked the duty liability after considering the SSI exemptions and has determined the total duty payable amounting to ₹ 6,18,103/-. Further the learned Commissioner has held that the appellant is liable to pay interest on the duty demand as the interest liability is compensatory in character which is imposed on the assessee who has withheld the payment of any tax or duty and such liability arises automatically by operation of law. Further I find that the learned Commissioner has observed that though the appellant is liable to pay the mandatory penalty under Section 11AC but since the Tribunal in the impugned order has directed him to impose nominal penalty and therefore he has only imposed a nominal penalty of ₹ 10,000/- under Section 11AC. Redemption fine - Held that: - the Tribunal has observed that there are several judgments for not imposing mandatory penalty and redemption fine in the facts and circumstances where the goods are cleared without payment of duty if bonafides are established - redemption fine dropped. Penalty - Held that: - the imposition of penalty of ₹ 10,000/- is justified. Appeal allowed - decided partly in favor of appellant.
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