2007 (3) TMI 454 - AT - Central Excise

Summary

Issues involved: Common issue involved in the appeals is whether penalty should be imposed on the respondents for alleged fraud and willful misstatement/suppression of facts to evade payment of duty.

Summary:

Issue 1: Imposition of penalty under Section 11AC of Central Excise Act
The Revenue filed appeals against the Commissioner (Appeals) order rejecting their appeals and not imposing penalty under Section 11AC. The respondent explained shortages of inputs as weighment errors and wastage, paying duty immediately. The lower authority held duty was deposited as per Section 11A(2B) and no willful misstatement or suppression was found. The Revenue contended fraud due to goods cleared without duty payment. However, no evidence showed duty evasion, only weighment errors and wastage were explained. The impugned order was upheld, rejecting the appeals.

In conclusion, the Tribunal found no evidence of duty evasion or willful misstatement/suppression by the respondents, upholding the lower authority's decision and rejecting the Revenue's appeals.