Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (7) TMI AT This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2009 (7) TMI 1062 - AT - Central Excise

Issues: Appeal against dropping of penalty under Section 11AC by Commissioner (Appeals).

In this case, the Department appealed against the dropping of penalty under Section 11AC by the Commissioner (Appeals). The respondent, engaged in manufacturing control panels, purchased armoured cables and conductors but did not use them as inputs. They claimed Cenvat credit on these goods but later cleared them without using, paying excise duty. The original authority imposed penalty under Section 11AC, which the Commissioner (Appeals) set aside. The Department contended that the duty payment was irregular. The respondent argued that they intended to use the inputs for new products but due to circumstances, sold them to others after paying duty and reversing the credit. The Department reiterated the original authority's findings, but the judge noted the respondent's actions of reversing credit and paying duty, indicating no intention to evade duty. The judge found no grounds for invoking Section 11AC, as there was an excess payment of duty and no short levy. The judge upheld the Commissioner (Appeals) decision to set aside the penalty, rejecting the Department's appeal.

 

 

 

 

Quick Updates:Latest Updates