Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 689 - AT - Central ExcisePenalty u/s 11AC of CEA - Goods cleared for captive consumption - duty paid only on the cost of production while as per the provisions of Rule 8 of the Central Excise Valuation Rules, 2000, they were required to pay duty on one hundred and ten per cent of the cost of production - differential duty demand alongwith Interest paid - Held that:- The appellant was admittedly adopting the assessable value as cost of production of the goods, whereas the same were required to be adopted as 110% of the cost. Inasmuch as the goods were being sent to their own sister unit, who were availing Cenvat credit of duty paid by the appellant, this could be a bona fide mistake on their part and cannot be held to be a case of mala fide intention with intent to evade payment of duty - penalty set aside while upholding duty demand - appeal allowed - decided in favor of appellant.
|