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2017 (12) TMI 221 - CESTAT BANGALOREValue based exemption - CENVAT credit - Section 11D of Central Excise Act, 1944 - Held that: - it is an admitted fact that the duty was paid along with interest before the issue of show-cause notice - the proportionate cevnat credit on stock of inputs, semi finished goods and finished goods amounting to ₹ 96,087/- was also paid after being pointed out by the Department. In view of these facts, I do not find any infirmity in the impugned order. Penalty u/s 11AC - Held that: - The imposition of penalty of ₹ 6,99,041/- u/s 11AC of the Act is not legal and proper and the actual duty liability under Section 11A of the Act comes to ₹ 5,70,113/- and not ₹ 6,99,041/- because the amount of ₹ 1,28,928/- was not duty assessed under Section 11A but the amount liable to be collected under Section 11D of the Act. In view of this legal position, I reduce the penalty to the extent of ₹ 5,70,113/- from ₹ 6,99,041/-. Penalty on Managing Director - Held that: - As far as penalty on the Managing Director is concerned, since equal penalty has been imposed on the company, therefore I do not think it proper to impose the penalty on the Managing Director as the Department has not brought any material to show that Managing Director was directly responsible for non-payment of duty - penalty set aside. Appeal allowed in part.
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