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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (6) TMI AT This

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2009 (6) TMI 778 - AT - Central Excise

Issues involved: Imposition of penalty under Section 11AC of the Central Excise Act, 1944.

Summary:
The appeal was filed by the Revenue against the setting aside of the penalty imposed on the respondent for clearing goods under exemption meant for international competitive bidding mega power projects. The Commissioner (Appeals) found that the appellant acted bona fide based on customer advice, but later realized the exemption condition was not fulfilled. The penalty was deemed unwarranted and set aside.

The main issue was whether the penalty under Section 11AC of the Act was leviable. Section 11AC outlines penalties for non-levy of duty due to fraud, collusion, misstatement, or suppression of facts with intent to evade payment. The respondent argued they acted in good faith based on the Letter of Intent for duty exemption.

The records revealed discrepancies in the show cause notice regarding the alleged wrongful claim of exemption. The respondent's counsel cited relevant Supreme Court judgments emphasizing the necessity of proving intent to evade duty for penalty imposition under Section 11AC.

The Tribunal concluded that there was no evidence of mens rea to evade duty by the respondent. Since the appellant failed to establish deliberate deception or intent to evade duty, the penalty under Section 11AC was deemed inapplicable. Consequently, the appeal was dismissed, and the case was disposed of accordingly.

 

 

 

 

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