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2018 (10) TMI 689

Penalty u/s 11AC of CEA - Goods cleared for captive consumption - duty paid only on the cost of production while as per the provisions of Rule 8 of the Central Excise Valuation Rules, 2000, they were required to pay duty on one hundred and ten per cent of the cost of production - differential duty demand alongwith Interest paid - Held that:- The appellant was admittedly adopting the assessable val .....

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es and also rubber compounds. They have another unit for manufacture of tubes. During the period of June, 2009 to August, 2009 they effected clearances of rubber compound to their second unit for its captive use and while as per the provisions of Rule 8 of the Central Excise Valuation Rules, 2000, they were required to pay duty on one hundred and ten per cent of the cost of production, they paid d .....

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suppression of facts on their part. This order of the Asstt. Commissioner was upheld by the Commissioner(Appeals). Hence the present appeal. 2. Ld.Advocate appearing on behalf of the appellant submits that they are not challenging the confirmation of demand of duty or interest and the only challenge is to imposition of penalty of ₹ 3,34,466/- imposed upon them under section 11AC of the Centr .....

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re availing Cenvat credit of duty paid by the appellant, we agree with the ld.Advocate that this could be a bona fide mistake on their part and cannot be held to be a case of mala fide intention with intent to evade payment of duty. The appellants were paying duty of around ₹ 20.00 Crore per annum and it cannot be said that the duty to the tune of around ₹ 3.00 Lakhs was intended to be .....

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