TMI Blog2015 (2) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, in the present case when the respondents were informed about the undervaluation of the goods, they deposited the differential duty along with interest. The goods were otherwise cleared by reflecting the statutory records and as such it can be safely concluded that there was no suppression, misstatement or any clandestine activity, with an intent to evade payment of duty, on the part of the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to be paid in terms of the provisions of Rule 7 of Valuation Rules, 2000 i.e. the price on which the goods were cleared by the consignment agents. 3. The respondent deposited the differential duty along with interest on 05/07/2006. Thereafter they were issued a show-cause notice on 31/10/2006 for imposition of penalty. 4. Commissioner(Appeals) vide his impugned order held, by rely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen Section 11AC is invocable, there is not discretion with the authorities to levy penalty less than the mandatory penalty provided under the said section. As such, the first issue required to be decided is whether Section 11AC is invocable or not. It is only thereafter that the quantum of penalty is required to be imposed in terms of the said section. 7. Admittedly, in the present case when t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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