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TMI Blog2017 (10) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... plied to M/s. Ashok Leyland under ARE-2. The appellants also gave a bond to the revenue to safeguard the duty liability on the bus in case the same is not exported. 2. Ld. Counsel for the appellants argued that the order of the bus for export was cancelled and consequently M/s. Ashok Leyland did not export the bus and as a result, duty liability on the said bus arose. The appellants discharged the duty liability and interest on the same. He argued that apart from duty liability and interest, penalty has also been imposed on the appellant under Section 11AC(1)(b) of Central Excise Act. He argued that it is in the normal course of business such events occur and no malafide can be imposed on the appellants. He argued that the appellants had d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quently the proceedings for recovery started. The appellants paid the duty and part of interest before show-cause notice. However, it is apparent that it was not a voluntary effort. In these circumstances, when the fact of cancellation of order was known to the appellants, the failure to comply with the provisions of law and deposit differential duty clearly indicates to malafides. In these circumstances, i find justification in imposition of penalty under Section 11AC, which is therefore, upheld. 7. The second issue pertains to levy of interest on a delay in respect of duty recoverable on the chassi. In this regard, Rule 7 of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules becomes re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every such returned goods shall be added to the non-duty paid stock of the supplier manufacturer. Explanation. - For the removal of doubts, it is hereby clarified that subject goods shall be deemed not to have been used for the intended purpose even if any of the quantity of the subject goods is lost or destroyed by natural causes or by unavoidable accidents during transport from the place of procurement to the applicant manufacturer's premises or from the supplier manufacturer's premises to the place of procurement or during handling or storage in the applicant manufacturer's premises." The said rule clearly prescribes that in such circumstances, interest is recoverable. 8. The argument of ld. Counsel is that if demand on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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