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2016 (5) TMI 1331 - CESTAT CHANDIGARHPenalty u/r 25 of the CER, 2002 - benefit of N/N. 56/2002-CE dated 14.11.2002 - the refund claims were pending for adjudication. Therefore the appellant could not pay duty through PLA during the period July 2010 to December 2010 - Held that: - penalty u/r 25 of the CER, 2002 can be imposed only when it qualifies provision of Section 11AC of the CEA, 1944. Section 11AC of the Act states that penalty can only be imposed, if duty has not been levied, not paid, or short levied, or short paid or erroneously refunded, by reason of fraud, collusion or any wilful misstatement or suppression of facts or contravention of any of the provisions of the Rule/Act to evade the payment of duty. Therefore, the mensreea for imposing penalty is required - There is no such allegation against the appellant that they have not paid duty in time by way of fraud, collusion or any wilful misstatement or suppression of facts or contravention of any of the provisions of the Rule/Act with intend to evade payment of duty - penalty set aside - appeal allowed - decided in favor of appellant.
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