2009 (1) TMI 772 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT KOLKATA, presided over by Dr. Chittaranjan Satapathy, heard an appeal regarding a penalty imposed on an appellant company for failing to issue invoices and debiting the daily stock register. The company argued that the penalty should be set aside since the penalty on the director had already been dropped. The consultant for the appellant claimed that there was no intention to evade duty due to the absence of the accountant, and that goods were delivered under pressure from a local politician. The respondent argued that the company was required to issue invoices and that mens rea was not necessary for imposing penalties under Section 11AC. After reviewing the case records and arguments, the tribunal found that the company had not followed prescribed procedures, did not issue invoices, and did not debit the stock register. Although the duty was paid promptly after detection by authorities, the tribunal concluded that the penalty was justified under Section 11AC and dismissed the appeal. The order was pronounced in open court.