TMI Blog2019 (4) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants have evaded payment of Central Excise Duty - HELD THAT:- In the present case, no adjudication proceedings under Section 11A of the Central Excise Act or any other provisions had been conducted at all. A close perusal of Section 11AC and 11AB makes it abundantly clear that these sections can only be invoked in cases where determination regarding evasion of payment of duty had taken place un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Act and availed abatement as specified under Notification No. 13/2002-CE (Non-tarif) dated 01/03/2002. On and from 16/08/2002, the appellant instead of determination and payment of duty under Section 4A of the Act, started payment of duty on clearances of goods in terms of Section 4 of the Act. 2. During the internal audit of the appellant s books of accounts, the Central Excise Department r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal records. 4. We find that the impugned order has imposed penalty and demanded interest on the basis that the appellants have evaded payment of Central Excise Duty. The main contention of the appellant is that the penalty and interest are not legally tenable. It is the case of the appellants that duty liability was discharged by them immediately upon the short levy being pointed out by the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoked in cases where determination regarding evasion of payment of duty had taken place under Section 11A. 6. In view of the above discussions, the impugned order passed under Section 11AC and Section 11AB cannot be sustained. Penalty under Section 11 AC cannot be imposed without any proceedings on a charge of duty evasion. Accordingly, the impugned order is set aside and the appeal is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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