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2018 (12) TMI 1418 - AT - Central ExciseDemand of Interest and 50% penalty - payment of duty liability on being pointed out - clearance of manufactured excisable goods namely castings between the period from 10.03.2013 to 30.09.2013 - Rule 8 (3A) of the Central Excise Rules 2002 - Held that:- It is found even from the SCN that assessee has discharged the duty liability much before the issue of show-cause notice and GAR detail challan - Appellant was put to show-cause notice for imposition of penalty under Section 11AC of the Central Excise Act 1994. In para 22 of the order of the adjudicating authority, he noticed no suppression of fact and only found non compliance of Rule 8 of Central Excise Rules 2002 for which he gave his finding that there is default in payment of duty which renders the appellant liable for penalty under the provision of Rule 8 (3A) of the Central Excise Rules 2002 as the Rule itself specifies such penalty which is read with Section 11AC of the Act. Penalty being a criminal remedy to set right a defaulter which is to be proved by the prosecution itself beyond all reasonable doubt, in the absence of any such finding regarding fraud, collusion, wilful misstatement or suppression of fact or contravention of the provisions of this Act or Rules penalty under Section 11AC is not attracted. The order of the Commissioner (Appeals) imposing 50% penalty on the appellant for not discharging duty liability of ₹ 26,34,931/- along with applicable interest is hereby set aside - appeal allowed - decided in favor of appellant.
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