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2018 (10) TMI 151 - CESTAT MUMBAIPenalty - Valuation - Department had observed that the appellant had contravened the provisions of Section 4A of the Central Excise Act, 1994 read with Rule 4 of Valuation (Determination of Price of Excisable Goods) Rules, 2000 and Rule 4, 6, 8 of the Central Excise Rules, 2002 - whether, penalty can be imposed under Section 11AC of the Act and whether there is element of fraud, collusion, willful misstatement of facts, etc. in defrauding the Government revenue by the appellant? Held that:- The appellant entertained a bonafide belief that no Central Excise duty is payable on the quantity discount provided to its customers for supplying of the goods. Section 11AC of the Act provides for imposition of penalty, only when the ingredients, viz., fraud, collusion, suppression of facts, etc. are present in defrauding the Government revenue. In the present case, since the appellant entertained a genuine and bonafide belief at the material time and paid the differential amount of duty along with interest subsequently, the provisions of Section 11AC of the Act cannot be invoked for imposition of penalty on the appellant. Penalty set aside - appeal allowed - decided in favor of appellant.
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