2015 (10) TMI 1117

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..... produced on record. Further, I find that to impose penalty under Section 11AC read with Rule 25 of the Central Excise Rules 2002, the ingredients of provision of Section 11AC are necessary, i.e., fraud, collusion, wilful misstatement, suppression of facts or contraventions of provision with an intent to evade payment of duty. Admittedly, all these ingredients are absent in the case. Only there is .....

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..... pectively. Thereafter, a case was booked against the appellant for shortages of finished goods found in their factory and demand was proposed to be confirmed. Penalty under Section 11AC read with Rule 25 of the Central Excise Rules 2002 was also proposed. Both the lower authorities confirmed the demand and also imposed the penalty. The First appellate authority instead of confirming equivalent amo .....

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..... Therefore, charge of clandestine removal of the goods is not sustainable. Admittedly, in this case except shortage no cogent evidence has been produced on record. Further, I find that to impose penalty under Section 11AC read with Rule 25 of the Central Excise Rules 2002, the ingredients of provision of Section 11AC are necessary, i.e., fraud, collusion, wilful misstatement, suppression of facts o .....

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