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2019 (6) TMI 7 - CESTAT CHENNAIPenalty u/s 11AC of the Central Excise Act, 1944 - Valuation - appellants have received certain consumables free of cost from their customers - inclusion of value of free materials in the assessable value - bonafide mistake - after the visit of the Unit, the appellant has paid-up the duty along with interest - HELD THAT:- The goods were subject to leviability of duty only after 09.05.2006. The period involved in the appeal is May, 2006 to March, 2007 and it can be seen that this was transitional period, wherein, the goods were subject to duty and appellant was put with a new burden to pay of Central Excise Duty. It can be understood that the omission to include value of free supplies while arriving at assessable value was only due to bonafide mistake. There is no iota of evidence adduced by the department to establish any positive act on the part of the appellant to establish suppression of facts with intention to evade payment of duty. Therefore, the ingredients of section 11AC are totally absent in the present case. The impugned order is modified to the extent of setting aside the penalty imposed under section 11AC without disturbing the duty demand or interest thereon - appeal allowed in part.
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