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2018 (10) TMI 465 - AT - Central ExcisePenalty u/s 11AC of the Central Excise Act - scrap sold of defective capital goods on which CENVAT credit availed - demand alongwith interest was already paid - Held that:- Admittedly the appellant was not manufacturing the said worn out parts and has simplicitor sold the same as scrap. The said sale of scrap was reflected in their records and was under the commercial invoice. It is well settled law that when the transactions are part of the records maintained by the assessee, no mala fide can be attributed to them to attract the penal provisions. Otherwise also, the interest to the tune of more than ₹ 1 lakh stand deposited by them, which is penal in nature and it cannot be held that non-payment of duty was on account of any mala fide, when the appellant had to pay huge interest amounts. Penalty not warranted - appeal allowed - decided in favor of appellant.
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