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2014 (11) TMI 574 - HC - Central ExciseImposition of Penalty and interest - assessee had paid duty before the show cause notice - Suppression of facts - whether the assessee’s claim was bona fide or as to whether the assessee has acted in a manner willfully evading the payment of tax - Held that:- The requirement as to suppression of fact of willful mis-statement with an intent to evade payment of duty as conferred in Section 11AB of the Act was however given up and Section 11AB by itself substituted by Act 14 of 2001 - Section 125 with effect from 11-5-2001. Thus, during the relevant material time, Section 11AB as it stood then, would stand attracted on the levy of interest on delayed payment of duty only when excise duty was not levied or paid or short-levied or short paid or erroneously refunded by reason of fraud, collusion or any willful mis-statement or suppression of facts or contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of duty. Thus, when the explanation given by the assessee is found to be bona fide and when the action of the assessee did not lack bona fide and when there being no intention to evade payment of duty, the Tribunal rightly set aside the payment of interest and penalty. In such circumstances, going by the provisions of the said Act and the facts found by the Tribunal, we have no hesitation in confirming the order of the Tribunal - Decided against Revenue.
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