2015 (11) TMI 958 - HC - Central Excise

CENVAT Credit - Clearance of goods to sister Unit - Non Clearance of CVD - Penalty u/s 11AC - Held that - Goods were cleared by the assessee to its sister unit and whatever credit was reversed by the assessee, the same was made available to its sister unit. Section 11AC of the Act provides payment of penalty where there is any intention to evade payment of penalty. In the instant case, we do not find that the assessee has committed fraud, collusion or wilful misstatement or suppression of fact with an intention to evade payment of duty. We do not find any substantial question of arising for consideration. - Decided against Revenue.

Summary

The Allahabad High Court dismissed the appeal by the Department against the removal of penalty on an assessee under Section 11AC of the Central Excise Act, 1944. The court found no intention to evade duty and no malafide actions by the assessee, who had cleared goods to its sister unit. The penalty was reduced to Rs. 2.00 lakhs by the appellate authority.