2015 (9) TMI 1500 - AT - Central Excise

Imposition of penalty - benefit of doubt - suppression of facts - eligibility of capital goods credit on MS Angles/ MS Steels/ MS Plates used in captive power plant - Held that - There appears no material on record to show that the appellant deliberately caused prejudice to Revenue. It appears that it was only the confusion that persisted for long time which prevented the appellant to settle the dispute - penalty waived - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, waiving the penalty of Rs. 29,58,725 imposed under Section 11AC of the Central Excise Act, 1944. The confusion regarding the dutiability of certain materials used in a captive power plant led to the penalty, but there was no deliberate suppression or fraud. The appeal was partly allowed due to the peculiar circumstances of the case.