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2009 (7) TMI 244 - CESTAT, NEW DELHIPenalty for default in payment of duty – cheque towards duty dishonored by bank for lack of funds - after receipt of the letter from the Excise authorities about the cheque having dishonoured by the bank, they immediately deposited the amount along with interest. – Penalty imposed by treating the goods as clandestinely removed - It appears that it was a bona fide mistake on the part of the appellants. In view of the cheque being not honoured, there is removal without payment of duty as stipulated under Rule 8. However, this cannot be treated as attracting the provisions of Section 11AC with intent to evade payment of duty. At the same time, we find that there is failure on the part of the appellant in ensuring that the credit taken in PLA was supported by the genuine payment which resulted in removal without payment of duty due. This warrants some penalty to be imposed upon the appellants. - In view of the above, we modify the penalty of equal amount imposed under Section 11AC as a penalty of Rs, 5,000/- under Rule 27 of the Central Excise Rules.
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